An Empirical Study On The Media Supervision And The Efficiency Of Investment

This paper studies the relationship between the media supervision and the efficiency of investment. Investment is an important means of creating value, is a major part of capital flows. An important part of the investment and financial decisions. In a perfect capital market economy without friction, there is no market friction, no commission-the existence of information asymmetry caused by agency problems, and the economy’s capital marginal revenue and costs are equal. But the capital market is not perfect, the two basic issues, namely, information asymmetry and agency problems, also caused the adverse selection and moral hazard problems. This also makes the efficiency of capital flow, that is not efficiency and investment enterprise makes the enterprise to maximize their value. The non efficiency investment has seriously affected the healthy development of the enterprise, therefore, shareholders need to non efficiency investment to seek effective governance mechanism to alleviate the information asymmetry and agency problems.With the rapid advance of the information industry, media development more and more quickly, play a more and more important role in social and economic life, In the improvement and dissemination of public information, plays an important role in restraining and supervising the conduct of the government and enterprises, especially the prominent role of the media in terms of corporate governance has been widely valued by scholars. As an important external governance mechanism, media supervision in corporate investment is more and more concerned by academics, media reports can reduce the cost of obtaining information, provide the correct, effective market information, so as to effectively reduce the influence caused by asymmetric information, but also to a certain extent, reducing the cost of agency, and effective supervision for the company the operator, so as to reduce the degree of adverse selection and moral hazard problems. From this level, the media supervision, as an external governance mechanism, possibly caused by asymmetric information and agency problems and improve enterprise behavior of non efficiency of investment, improve company efficiency.This paper is divided into six parts, each part of the main contents are as follows:The first part is the introduction. First introduced the background and significance of this study, the research framework and the research content of each part separately introduced, and expected contributions. This paper mainly studies the relationship between the media supervision and the investment efficiency, Through theoretical analysis and empirical research, media research investment behavior. Part of the framework using the wiring diagram to clear.The second part is the literature review. This part mainly summarizes and concludes from two part of the media supervision and the efficiency of investment, because the media directly on investment efficiency of literatures, this part mainly summarizes the impact of media on the corporate governance literature. The theory of investment efficiency from information asymmetry and agency this part introduced and summarized, and Research on non efficiency of investment analysis of the literature. Finally, from the overall and summarizes the content and significance of literature review.The third part is the theoretical analysis. The non efficiency of investment concept and media supervision and related concepts are introduced, focusing on the non efficiency of investment theory of asymmetric information and agency theories. At the same time carries on the elaboration to the media supervision plays an important role in corporate governance. The important role of the media in corporate governance, through the theory of asymmetric information and principal-agent theory, system analysis from the media supervision effect on the efficiency of corporate non investment. And then put forward the hypothesis1: there was a significant positive correlation between the media attention and the listing Corporation investment efficiency, the number of reported more media listing Corporation, media attention is high, the efficiency of investment is high. Hypothesis2:if the listing Corporation investment efficiency is high, the listing Corporation to get more media attention. Negative reports that3:media more easily than positive news for corporate investment efficiency. This paper mainly uses Richadson (2006) model to measure non efficiency of investment. Provided by CNKI database, manual collection of media reports of the number and quality of data as the media supervision index.