Media Negative Reports, Information Disclosure And Mergers And Acquisitions Of Enterprises

Media reports in the capital market also plays a function of information dissemination and regulatory functions. Information communication refers to the media by collecting, processing, collation and dissemination of information of listed companies to send a signal to the market, in order to reduce the information asymmetry. Media supervision and governance refers to through the media reports of listed companies, to control or supervise the incentive and constraint on the behavior of listed company and its internal control, the objective is to improve the governance of listed companies and the improvement of business performance. Media as an important external governance mechanism, under the framework of corporate governance, through the manager’s reputation mechanism play a role. Through the supervisory management of the media can be in a certain extent inhibitory agent behavior in company and its internal control, to play the role of "watchdog", in order to enhance the value of the company.In the vigorous development of the capital market under the background, the first empirical analysis of the media of our country listed companies reported attention,empirically studies the negative media coverage of company information disclosure behavior and its internal mechanism. Then 772 business for 2003-2012 Shenzhen as a sample of the media of our country listed company mergers and acquisitions of the relationship between the recombination of capital allocation behavior. Empirical study found that the media as a kind of legal governance mechanism, not only in the dissemination of information of listed company information disclosure affect the quality,may have an impact on the behavior of the listed company mergers and acquisitions.Media reports of listed companies is through the information spreading function to reduce information dissymmetry between outside investors and to improve the enterprise information disclosure quality, then outside investors can effectively and timely understanding of and attention to the enterprise capital allocation behavior, finally play the role of supervision and management of the media.Is specifically manifested in: both the newspaper media and network media reports,the negative reports can effectively enhance the listed company’s information disclosure quality, and network media reports is more significant. Effective fully the quality of information disclosure is the media continue to play its supervisory role in corporate governance is the cornerstone of, based on, media supervising corporate governancereflected in media reports on mergers and acquisitions of listed companies will succumb to political pressure. Namely, the media of mergers and acquisitions of listed companies target is from the same provinces or reports from foreign enterprises more favorable, the corresponding negative reports will be less. Media reports of the negative affect the results of merger and reorganization of listed companies, especially non-state-owned listed companies, and this effect in the equity division reform is complete after the more obvious thereby. The conclusions of this study confirmed the corporate governance role of the media in China’s capital market is the existence of, although limited to our manager system is not perfect and reputation mechanism of limitations, but the external supervision function of the media for capital allocation behavior of listed companies is influential, this paper finally based on the premise of improving listed company resource allocation efficiency of the proposed three media enterprise policy recommendations.