Media Attention,Internal Control And Non-productive Expenditure

Non-productive expenditure refers to those expenses that are not beneficial to the realization of the production and operation objectives of the enterprise,such as rent-seeking expenses and agency costs.At present,there are many researches on how to reduce agency costs and reduce rent-seeking costs at home and abroad.However,most of the existing researches only focus on the governance effect of the company's internal control,while ignoring the effect of the company's external governance mechanism on non-productive expenditures.As for the research on the internal and external governance mechanisms of the company,there are fewer researchers.Based on this,this paper combines the internal and external governance mechanisms of the company to empirically study the influence of media attention and internal control and their interaction on non-productive expenditures,trying to find new ways to effectively reduce non-productive expenditures way.This paper uses information asymmetry theory,principal-agent theory,reputation theory,transaction cost theory and inter-organization relationship theory to theoretically analyze the influence of media attention,internal control and the interaction between the two on non-productive expenditure.Based on the sample of 5475 A-share listed companies from 2012 to 2016,this paper establishes a regression model to examine the impact of internal control quality,media supervision and their interaction on non-productive expenditures.further research.The empirical results show that:(1)The media attention under the total sample has a significant inhibitory effect on non-productive expenditure.However,after the media report reported that the non-productive expenditure coefficient was standardized and then carried out the mean T test,the nature of media reports had significant differences on the non-productive expenditures of different property companies.In the sample of state-owned enterprises,the absolute value of the coefficient of media attention is smaller than the absolute value of the media attention coefficient in the sample of non-state-owned enterprises.In other words,the media is more concerned about the external governance of non-state-owned enterprises.In regions with high marketization,the absolute value of the coefficient of media attention is less than the absolute value of the media attention coefficient in the sample of low marketization.That is to say,the media pays more attention to the external governance effect in the low-marketing areas;(2)the internal control under the total sample has a significant inhibitory effect on non-productive expenditure.However,high-quality internal control has the effect of reducing non-productive expenditures only in non-state-owned enterprises and high-marketization areas;(3)there is an alternative relationship between media attention and internal control in reducing non-productive expenditures,but in practice There are still two governance mechanisms that need to be combined in the governance process.Finally,this paper puts forward relevant suggestions on how to reduce non-productive expenditures from the aspects of improving the quality of internal control,strengthening the disclosure of internal control information,and paying attention to the external governance role of media attention.In theory,the research in this paper enriches the discussion of non-productive expenditures in the existing literature.At present,there are few research literatures on non-productive expenditures,most of which are discussed for one of the agency costs or rent-seeking costs.A small amount of literature studies the overall concept of non-productive expenditures.Therefore,this paper is an important and useful supplement to the research literature on non-productive expenditure issues.This paper combines the two types of corporate governance,media attention and internal control,and further studies the impact of non-productive expenditures under different market conditions,enriching the literature on corporate governance.This paper studies the topic from the new theoretical perspectives such as transaction cost theory,and provides a new perspective for examining the mechanism and path of transaction cost theory.From a practical point of view,the current on-the-job consumption of executives and the cost of rent-seeking are all hot issues in the society.They are also the focus of management that companies pay more attention to,and they also affect the interests of shareholders.The media attention and the impact of internal control on non-productive expenditures discussed in this paper have strong realistic foundations and practical needs.It can meet the needs of information users,and can affect the reputation of professional managers or board members to a certain extent to regulate their own behaviors,and at the same time provide evidence for corporate control,reduce non-productive expenditures,and thus improve economic efficiency and policy basis.