Research On The Influence Of Media Monitoring On Firm Performance

It is currently in the deepening reform phase of China,and the market and legal system is not perfect.The information asymmetry between enterprises and stakeholders is still comparatively prominent.In this case,because of its dual characteristics of both the information carrier and the external supervision,the media has become a useful supplement to the system of present stage.In addition,with the coming of Full Media Era,the media's communication ability and leading effect has increased,and its related reports about enterprises has become an important basis for stakeholders' decision-making,which ultimately impacted the performance of enterprises.Actually,the enterprise which is facing with the media monitoring often takes crisis public relations as a response to release the negative effects of media coverage.Therefore,it is of great theoretical and practical significance to study the relationship between the media monitoring,crisis public relations and firm performance.The paper takes A-share listed companies in Shenzhen Stock Exchange from 2010 to 2015 as samples,and examines the results of the 2044 observations.The empirical results show that:(1)There is a significantly negative relationship in the short-term and a significantly positive relationship in the long-term between media monitoring and firm performance.(2)After considering the mechanism of CPR,the negative effects of media monitoring are released in the short-term,but it may not be significant to the long-term development of enterprises.(3)According to the nature of property right,the article classifies all the samples to two groups,and found that compared to state-owned enterprises,the improving effect of negative media coverage to firm performance is more obvious in the non state enterprises in the long term.(4)In order to ensure the robustness of the results,the paper uses the media negative reports of network and the intensity of crisis public relations as the replacements,and the results are similar to previous ones.The innovations of this paper lie in:(1)enriching comprehensions on understanding the mechanism how media monitoring affects the performance of enterprises in the short-term;(2)taking full account of the CPR's effect by introducing the mechanism of corporate crisis public relations and analyzing its short-term and long-term roles.