Research On Media Supervision And Accounting Fraud Governance Of Listed Corporations

Since the 21 st century,the accounting fraud events have attracted the market attention all over the world.For example,the Enron event,the Century Communication in America and Ying Guangxia、Qiong Mingyuan and Lantian exents in China.A series of cases show that the accounting fraud has become the main factor that hinders the development of the market economy.The accounting fraud harms the interests of small investors and threats the credibility of accounting information.Therefore, the timely discovery and management of accounting fraud has become an important measure for the guarantee of the healthy development of the market economy.This paper aims to explore the effects the mass media has on the correction of accounting fraud.This paper takes corporations with accounting fraud from 2003 to 2010 as an example.It aims to explore the effects that media supervision has on the accounting fraud correction.At the same time,it takes the corporation with the bad news as an example to explore the media reputation mechanism.Through hypothesis testing,this paper shows that:(1) the media supervision has a positive effect on the correction of accounting fraud in the listed corporations of China;(2) the degree of media supervision has a positive effect on the correction of accounting fraud in the listed corporations of China;(3)Financial media has a more remarkable effect on the correction of accounting fraud than non financial media;(4)Traditional paper media has a more remarkable effect on the correction of accounting fraud than internet media;(5)The corporations who care reputation have a higher posibility of correction and the media may effectively control the accounting fraud through reputation mechanism.The study explores the effects that the media has on the economy supervision with the fraud samples of the long period for the first time through empirical analysis, which strengthens media governance theory and deepens the study on the relationship between the media and the accounting fraud governance,which promotes integration of mass media industry and market economy.