An Empirical Study Of Media Coverage On Earnings Management Under The Intermediary Effect Of Overconfidence

The management of the company is closely linked to the subjective will of the people and changes of the external environment,one of the assumptions of the traditional western financial accounting theoretical premise is based on the theory of rational expectations of economics,but after the 1980 s,behavioral finance theory began to rise and gradually abandoned the rational person hypothesis and combined psychology and behavioral cognitive science with corporate governance.One of the most important findings was the manager has overconfidence behavior and mainly analyzes the negative effect of this bounded rational behavior on corporate governance.At the same time,with the increasingly significant influence of the media on the transparency of the company today,how to suppress the issue of earnings management in corporate governance through the media is particularly important too.The relevant literature at home and abroad either discusses the negative impact of the irrational factors of executives' overconfident psychological characteristics on company performance or directly discusses the direct changes brought about by media reports to corporate governance,but still lacks media reports.The combination of high-level behavior and psychological factors,together with the impact on corporate earnings management.Therefore,this article starts with internal and external factors to explore whether the psychological characteristics of overconfidence will have mediating effects between media reports affecting the company's earnings management process,and find empirical evidence through a large sample of empirical studies to invest in related interests.,regulators,and company shareholders provide decision-making reference.This article selects all A-share listed companies from 2013 to 2015 as research samples,and first proposes a research question,that is the impact of media coverage and overconfidence on corporate earnings management,and whether overconfidence plays an intermediary role in the media reporting on the mechanism of earnings management.;secondly,it summarizes the relevant literatures form domestic and foreign about earnings management and media,Reports,overconfidence,and comments on the logical relevance and research deficiencies,then combined with targeted analysis and related theoretical results to obtain the assumptions that the entire research process of this article needs to be based on.Finally,through the construction of related models,descriptive statistical analysis,multivariate linear analysis,binary logic analysis and other empirical tests verify that the hypothesis is established.The research in this paper shows: First,there is a clear negative correlation between the media coverage and the company's earnings management;second,there is also a significant negative correlation between the overconfidence and media reports.Thirdly,overconfidence has produced some mediating influences between media reports and earnings management.That is,media reports,to a certain extent,can inhibit the company's earnings management by influencing the limited rational psychology of overconfidence.