Government Intervention,Negative Media Coverage And Investment Efficiency

As a new corporate governance mechanism,media coverage plays an important role in today's capital market.Negative media coverage on companies may improve the level of corporate governance,and may also affect corporate managers' behavior,thereby may affect the investment efficiency of enterprises.In this paper,the relevant literature at home and abroad is reviewed.The existing research mainly involves the motivation and influencing factors of media coverage,the measurement of media coverage,the corporate governance of media coverage,the influence of corporate governance and managers' behavior on investment efficiency.On this basis,the hypotheses of this paper are put forward.In this paper,the relationship between the government intervention,the negative media coverage and the investment efficiency was analyzed from a number of angles.In this paper,a share listed companies in Shenzhen stock market and Shanghai stock market in 2015 are taken as samples.As the empirical research part,descriptive statistical analysis and Pearson correlation analysis were carried out for the main research variables firstly.Then,the relationship between government intervention,negative media coverage and investment efficiency is tested by multiple regression model,and the research hypotheses are verified.The results of this paper show that :(1)negative media coverage is positively correlated with the investment efficiency of listed companies.(2)the government's interference in the media will affect the relationship between the media and the investment efficiency of listed companies.In areas where government intervention is weak,negative media coverage has a greater impact on investment efficiency;In areas where government intervention is strong,negative media coverage has less impact on investment efficiency.(3)After controlling for other variables,compared to underinvested companies,negative media coverage plays a more effective role in overinvestment of listed companies,the negative media coverage can significantly improve the investment efficiency of the listed companies with excessive investment.Finally,based on the theoretical analysis and empirical research conclusions,this paper puts forward some suggestion and shortcomings of this paper.Two suggestions are put forward: To create a good environment for media to play a supervisory role freely,and the concerned parties should arouse enough attention to the negative media coverage.