Research On The Influence Of The Media Attention And Internal Control Quality On Minority Investor Protection

“Both the public ownership economy and the non-public ownership economy are the important components of the socialist market economy,which are the important foundation of China's economic and social development” proposed by our party at the Third Plenum of the 18 th CPC Central Committee.The reason is that with its own tenacious vitality and outstanding achievements private enterprises in our country have occupied an important position in the national economy and win more right of discourse power and the living space for the non-public economy.In recent years,various irregularities of listed companies which were exposed by the media have attracted the attention of the Commission and other relevant departments,for example,large shareholders encroach on the interests of external investors.How to better protect the interests of minority investors has become the focus of market regulators and research topics of scholars.In the paper,we study the impact of media attention on the protection level of minority investors,the influence of internal control quality on the protection of minority investors and the effect of media attention and internal control quality on the protection of minority investors based on the private listed companies in Shanghai and Shenzhen stock market in 2011-2015.The research perspective of the paper may be a useful supplement to the research on the protection of minority investors.Through the research,the following conclusions are drawn: First,the higher the quality of internal control of private listed companies,the more conducive to the protection of the interests of minority investors.Second,from the point of the total media attention,the media can provide more information for the minority investors to make reasonable investment initiatives,indirectly protect the interests of them.In addition,from a further distinction of media attention,the level of minority investors protection of the private listed companies which affected by negative media attention is higher than which affected by the nonnegative media attention.Third,when other conditions remain unchanged,the integration of media attention and high quality of internal control can effectively improve the level of protection of minority investors in private listed companiesAccording to the empirical results,this paper puts forward some policy recommendations on how to improve the level of protection of minority investors in private listed companies from the following angles: Firstly,small and medium investors' service center should innovate the protection path for minority investors.Secondly,the supervisions improve the internal control laws and regulations about private listed companies.Thirdly,the media should strengthen self-discipline and effectively play a supervisory role.Fourth,private listed companies consciously establish and improve their internal control system.Fifth,minority investors enhance self-protection awareness.