The Corporate Governance Role And Operation Mode Of Media

With the deepening research of corporate governance, the mechanisms have been cleverly designed and proper used. However, the effect is not satisfactory. Issues are still emerging, like Enron and Guang Xia traps. They shocked researchers, and drew their attention to the special role of the media in the cases and inspired researchers to study the corporate governance role of media. In further study, some parts of this region are still unclear. This paper tried to improve corporate governance theory by analyzing the case of Zi Xin misrepresentation, and studied the operation mode and corporate governance role of media in this case.Zi Xin misrepresentation was a famous case in Chinese stock market in 2011. A complaint letter exposed online played the prelude of the case. Many media did a lot of investigations, kept questioning and discussing on the case. Then regulatory agencies started their investigations and made punishment. Media play a very positive role in this case. It not only tried to do their jobs and find truth, but also took advantage of its communication platform to attract more attention to discuss the impact of the case and construction of relevant market mechanisms.After case studying, This paper summarize two operational mechanism of media mechanism, "reputation mechanism" and "legislation promotion". This paper also discuss "Media – Regulation- Law" linkage mode, and pointed out media’s shortage in this case. Based on comprehensive analysis, This paper revised the model of Dyck et al.(2008). This paper proposed that media should increase the reaction speed, strengthen cooperation with other mechanisms and take more care of news management to avoid negative effects.