The Quality Of Internal Control?Media Supervision And Debt Financing Cost

With the continuous development of society, a new era of information technology has arrived, the information economy, knowledge economy and so on are the driving force for the development of the twenty-first Century. Of course, society is the development and problems of the coexistence of information overload and information scarcity, information asymmetry, these are the problems that exist in the development, affecting the efficiency of resource allocation and social equity. In order to protect the rights and interests of investors, to provide true and reliable information, the relevant regulatory authorities to disclose the listing Corporation to be certified public accountants audit of the financial report. However, in recent years, some of the exposure of the financial fraud incidents, so that the general public have begun to question the quality and timeliness of accounting information.In order to improve the quality of accounting information, provide to investors more true and reliable information, the relevant government departments need to the internal control of the legislative work on the agenda, by formulating the relevant provisions of the internal control to effective supervision of accounting information production, from the source quality assurance. "Sarbanes act" is the United States government in the wake of the Enron event launched; which explicitly states that listed companies to disclose internal control effectiveness report and auditor's attestation report. In 2008, China's Ministry of Finance in conjunction with the Commission, China Banking Regulatory Commission and other jointly formulated the "basic norms of internal control", which also requires listed companies disclose self evaluation report and need to hire intermediary institutions related to audit.2010, five ministries and the introduction of the "enterprise internal control supporting guidelines", which clearly stipulates that a series of internal control standards. "Basic norms" and "supporting guidelines" the promulgation of the two documents, marking the completion of the internal control system of China's enterprises. Anyway, all the countries in the world are in strengthening the construction of internal control, in order to enhance the authenticity and validity of the accounting information, for the public to provide more reliable information of enterprise, help to the investment decision, maintain the order of the capital market.Information is one of the important characteristics of modern society, and the media, as an important way of information dissemination, plays a positive role in the external governance mechanism. Media has the characteristics of independence, objectivity, and self-reliance, the widespread concern all behavior of listed companies, to supervise and restrict the management of moral risk, reduce investors face the information imbalance, thereby reducing the investment risks it faces. In short, the governance function of the media supervision, to a certain extent, make up for the defects of the current corporate governance mechanism in our country, which has an important role in protecting the interests of investors and promoting the security of the capital market.Because of the tax effect of debt financing,leverage effect and not diluted equity and a series of advantages, it is more and more favored by the business. The debt financing cost will not only directly affect the company and the creditors and the interests of other stakeholders, but also affect the effective allocation of resources and economy development. Although the researchs about how to reduce the cost of debt financing have many, but they are only concerned with the effects of internal mechanism of corporate governance, ignored the role of the external mechanism of corporate governance on the debt cost, combined with the company's internal and external governance mechanism study of more than understood. Therefore, this paper tries to impact on the cost of debt financing to the company's internal and external governance mechanism perspective, the empirical study of internal control quality and media supervision and their mutual relations, so as to how to effectively reduce the cost of debt financing to provide new empirical evidence.Based on the four theories, this paper puts forward the research hypothesis based on the theoretical analysis, this paper sample is from 2000 to 2014 19042 A shares of listing Corporation, build a multiple linear regression model, and the media supervision by the nature of further classification, study the impact on the cost of debt financing. According to the analysis of a series of data, draw the following conclusions:(1) the higher the quality of internal control, companies in debt financing, the cost is low (2) media supervision for the impact of the debt financing cost in the total sample is not significant; but the further classification of it, with no negative news, news the more the number of media reports, the lower the cost of debt financing for the company; negative news, the more the number of news reports, the cost of debt is higher (3) in reducing the cost of debt financing, there is a complementary relationship between internal control and supervision of the two media, whether there is negative news samples or no negative news all samples can significantly reduce the cost of debt financing company.Finally, proposing the relevant policy suggestion according to the theoretical analysis and empirical conclusions.