Analysis Of The Influence Of Media Coverage On Corporate Transparency Of The GEM Listed Companies

Since 2009 the GEM launched, it has attracted extensive attention of the society from all walks of life. But due to its late start and low threshold which leaded to many problems exposed. With the strengthening of supervision as well as the introduction of government policies, the GEM listed company information disclosure put forward higher request, the concept of corporate transparency entered the field of corporate governance. GEM improve the transparency of listed companies is not only an important means to alleviate the information asymmetry between information users and information publisher problems, but also the necessary weapons to protect user information and the legitimate interests of investors. Institutional environment play an important role of corporate governance, but its need a long-term to realize. The media as "the fourth party rights" outside the legal system of governance role cannot be ignored. In this paper, we study as the institutional environment of external governance mechanism and media coverage and their interaction on the GEM listed companies influence of transparency.In this article, companies which announced disclosure level by Shenzhen Stock Exchange in the GEM listed companies from the year of 2012 to 2014 are selected as the sample, of the institutional environment and corporate transparency of media coverage and relationship are analyzed. Firstly, this paper analyzes the description statistics, Spearman correlation coefficient and Mann-Whitney univariate of each variables in the model. Secondly, we verify research hypothesis by using Binary Logistic regression analysis to verify the influence of media coverage and legal environment for corporate transparency. Finally, robustness tests using substitution variables.The results of empirical research show that, (1) Media coverage has a significant positive influence on the transparency of the GEM listed companies, which help to enhance corporate transparency. (2) Institutional environment has a significant positive influence on the transparency of the GEM listed companies, good institutional environment help to enhance corporate transparency. (3) The largest shareholder’s stake of the GEM listed companies and corporate transparency show U-shaped relationship, when the first big shareholders holding small or large, corporate transparency more likely to improve. (4) Location of the company’s institutional environment as possible, improve the transparency of media coverage of the company’s role in promoting the more obvious.