Media Rent Seeking,Corporate Governance And Investor Recognition

News media has been known as "the fourth power of government" besides administrative power,legislative power and judicial power.In recent years,on the one hand,many studies have indicated that as the capital market information intermediary,news media that actively collects,collates and publishes company information plays a certain role in corporate governance.However,on the other hand,driven by the interests,the media may use their resources for news rent-seeking and media extortion.From the perspective of corporate governance,the rent-seeking of news cannot supervise from external,but also may harm the interests of investors.The "21st Century News Extortion Case" is one of the most representative cases.Different from the traditional extortion,this case presents the characteristics of socialization,systematization,large-scale and professionalization,and numerous listed companies and pre-IPO companies at the same time.The "21st Century News Extortion Case" is also a reflection of the increasingly news rent-seeking and need urgent regulation.It is noteworthy that whether investors can judge the news' authenticity or not so as to avoid the loss when media report has deviation.If they can,they can base on what information?If they cannot,how can they protect their interests?Based on related theories,literature and case review,this article thoroughly explore the above questions by the method of event study and OLS regression,and discover the investors cannot distinguish the inaccurate news.As a result,solve the problem of"rent-seeking of news" thoroughly is the most effective way to protect the investors.Based on the further study of property rights theory,the fundamental of reducing the "rent-seeking of news" is to solve the problem of transaction cost from the external supervision.Therefore,only the perfection of laws and regulations,system and market sequence can really solve this external problem,improve the level of corporate governance and protect the interests of investors.From the point of structure,this paper consists seven chapters.The first chapter is the introduction which mainly introduces the background,contents,research methods and innovation.The second chapter is literature review.It covers the impact of media reports on the stock price and investor behavior,media coverage and corporate governance,rent-seeking and investor recognition,media supervision and transaction cost.The third chapter is mainly about "twenty-first Century newspaper" case which covers every aspect of the events,process and key points.The fourth chapter is the theory analysis and hypothesis.The paper puts forward the main hypothesis by concept definition,literature review and logical deduction.The fifth chapter is sample selection and research design.The sixth chapter shows the results of empirical research.The seventh chapter put forward suggestions and research prospects.