The Effect Of Media Coverage In Different Kinds On The Earnings Management

From Wuliangye allegedly associated business events to Yongyou put large r&d cost capitalization and Huali implemented a number of earnings management to implement equity incentive and so on,the phenomenon of earnings management of listed companies is still common.For earnings management governance,early research mostly focused on internal governance.As marketization accelerating,as well as the development of the CPC central committee attaches great importance to the media,the media coverage to the external governance mechanism gradually got the attention of people.Through further research,scholars have found that media coverage mainly have three kinds of governance mechanisms,the traditional supervision mechanism,reputation mechanism and market pressure mechanism.In theory,when govern company earnings management,both three kinds of mechanisms play a role.However,existing literature think that because of China's special national conditions,dominated by state-owned equity and has not yet formed a mature manager market,making the media coverage which will difficult to play a role of governance,through the reputation mechanism in our country.This article will explore media coverage in the theory of company governance mechanism of earnings management.And then,try to study which mechanisms influence the earnings management,traditional supervision mechanism or market pressure mechanism?And on this basis to further explore the nature of the media differences influence on earnings management.The article chooses 2013-2015 Shanghai a-share listed companies as research samples.In the perspective of different media,the paper try to study why the media's impact on earnings management.It uses the modified Jones model to measure accrued surplus.The paper distinguishes the nature of the media for policy oriented and market oriented media,according to the newspapers' organizer.And it adopts the way of manual search to get the number of relevant information of listed companies.The paper assesses overall media coverage and the different nature of media influence on earnings accrued.The main content of this paper is as follows.The first part is the introduction.This part mainly introduces the research background,research methods and contents,and possible innovations and shortcomings of the paper.The second part is the literature review and theoretical basis.It systematically reviews and summarizes earnings management and media coverage,and the impact of the media coverage on the earnings management.and then the paper expounds the related theory,which lay a theoretical basis for further research of this article.The third part is the theory analysis and the research hypothesis.Based on the theory of the third part,it proposes two hypotheses:First,under the effective supervision of the media,the more media coverage,the enterprise are more likely to reduce earnings management based on accrued profits;Second,relative to the market oriented media coverage,the more policy oriented media coverage,the enterprise are more likely to reduce accrued items earnings management.The fourth part is the research design.It determines sample sources and screening criteria,as well as defines relevant control variables and constructs a reasonable model.The fifth part is the empirical test and analysis of test results.It mainly includes variable descriptive statistics,correlation test and regression analysis.It also test hypotheses,whether the media coverage affect earnings management.The sixth part is conclusions and advices.This part summarizes the results obtained,and thereby makes relevant recommendations.There are three major conclusions:(1)Under the effective supervision of the media,the more media coverage,the enterprise are more likely to reduce earnings management based on accrued profits.In our country,media play a role of corporate governance mainly through traditional supervision mechanism.(2)the policy oriented media coverage can inhibit earnings management behavior,and the market oriented media coverage have no effect in earnings management behavior.According to the above research conclusion,this paper put forward some suggestions to the government and the media separately:the government actively guide the media to participate in corporate governance and timely deal with the issue of media reports found;Media should improve the depth and timeliness of the reports and give full play to the governance role.