Research On The Effective Influence Of Media Attention On The Exchange's Comment Letters

Along with the comprehensive deepening of reform,the capital market is undergoing profound changes from the external environment to its own mechanism,and the direction of China's regulatory policy is also changing.It requires stable improvement,deepens strict supervision in accordance with the law,focus on improving regulatory capacity,abide by the bottom line of risk prevention and control strictly,and also strengthen comprehensive supervision.The Shanghai Stock Exchange and Shenzhen Stock Exchange which play an important role in the supervision of the capital market,have established an oriented-information-disclosure supervision mode,explored new mechanisms for in-process and post-event supervision,and continuously improved the level of regulation by law.Comment Letters as one of representative regulatory instrument in stock exchanges,its advantaged characteristics is close to the regulatory policy trends.The style of ‘inquire into the root of the matter' regulation: exchange established information disclosure of listed company supervision system with oriented-investor-demand and ensured the key information is disclosed with high transparency.Comment Letters can focus on specific companys' problems which related to the questionable announcements' content,flexible to ask for information disclosure more meticulous detail;The in-process supervision mechanism: the Comment Letters can be issued immediately after the announcement of the company,which have great significance for timely correction and suppression of misconduct,effective prevention and resolution of market risks;Improving the transparency of supervision: the Comment Letters and its responses can be released to investors in a timely manner.The comprehensive public disclosure mechanism not only makes the information flow of listed companies unimpeded,but also prevents the abuse of exchange regulatory power.The Comment Letter plays an important role in supervision,but regulation may not work due to its limitations.As a response to the company announcement,its information source is not wide enough,and the degree of information asymmetry between investors and listed companies still exists.As one of the external supervision forces of the capital market,the media's external governance function is complementary to the exchange inquiry supervision.This article based on the theory of governance of traditional media supervision mechanism,taking Comment Letters as samples,which issued by Shanghai Stock Exchange and Shenzhen Stock Exchange in 2015-2017,to explore the relationship between media attention and Comment Letter issued,including different time span and emotional tendency of media attention respects to influence,and the media attention on involved serious degree of the influence of different companies.This paper is mainly divided into five parts: the first part introduces the background of China's regulatory policy,the introduction and importance of the Comment Letters.Showing the supplementary role of media to exchange inquiry and putting forward research questions.and the important role of the introduction of media in the inquiry system.The second part summarizes the research status by starting with literature of the media and Comment Letters,then consolidates the theoretical basis and determines the research direction according to the existing deficiencies.The third part proposes hypothesis according to the research questions,constructes empirical methods and looks for variables for models.The fourth part analysises the structure characteristics of sample data after processing.Also including regress the hypothesis and test its robustness.The fifth part is the summary and discussion.Analysising empirical conclusions in combination with the actual situation,and summarizing the limitations of this paper.The research results show that: 1.The increase of media attention will increase the probability of Comment Letters issued,and the closer the time is to the date of sending Comment Letters,the greater the positive impact of media attention on sending letters will be.2.In the closer time span to the date of Comment Letters,compared with companies with only information problems,media attention has a greater positive impact on companies with serious violation of information disclosure rules.3.Negative media attention has a greater positive impact on exchange letters than positive media attention.Through the research of this paper,to some extent,it explains how to play the external governance role of media better,and form the complementary mechanism under the economic background of our country and the exchange supervision system.It provides useful enlightenment for improving exchange supervision ability,preventing and resolving financial risks and ensuring the sustained,stable and healthy development of capital market.