The Influences Of Negative Media Reports On The Protection Of Small Investors

In recent years,with the expansion of China's capital market,the protection of small and medium investors has begun to receive attention.Scholars construct internal and external mechanisms for the protection of small and medium investors from the perspectives of legal protection,market supervision,and internal corporate governance.However,they all have certain flaws and cannot achieve satisfactory results.At the same time,the capital market has emerged a large number of typical cases in which the media has affected small and medium investor rights protection boxes.As a result,people have begun to pay attention to media governance effects,and a large number of media reports and research results on corporate governance,asset pricing,and auditing behavior have emerged.On the basis of systematically reviewing the relevant theories of investor protection and media governance,this paper focuses on whether board governance and large shareholder behaviors function as intermediary variables.This paper manually collects negative report data from the media for sample companies from 2012 to 2016.Using board governance and major shareholder behavior as intermediary variables,this paper analyzes and empirically studies the mechanism of media negative reports on the protection of small and medium investors.This article aims to explore two issues: First,whether media negative reports can improve the internal governance of the company,such as improving the quality of governance of the board of directors and improving the behavior of large shareholders;second,whether the improvement of the internal governance of the company can improve the protection level of small and medium investors.The results of this study demonstrate that media negative reports can effectively improve the protection level of small and medium investors and confirm the mediating effects of abnormal CEO changes,independence of the board of directors,and short-selling behavior of large shareholders,negating the mediating effect of major shareholder support.