The Relationship Between Media Attention And Financial Performance

With the improvement of standards of living,people's demand for cultural products gradually increased.And under the strong support of national policies,the cultural and creative industry has gradually emerged.As the core of the development of cultural and creative industry,innovation is the most critical link of the whole cultural and creative industry and the foundation of the industrial chain.With the rise of cultural and creative industries,listed cultural and creative enterprises are gradually attracting media attention.Due to its unique functions of information dissemination,reputation building and corporate governance,the media will bring market pressure to managers,which will result in their short-sightedness(market pressure hypothesis)and short-term earnings management,thus causing changes in financial performance.However,as an important factor in the external environment of enterprises,analysts provide investors with effective information when enterprises are concerned by the media to make investment decisions,and play an irreplaceable role in corporate governance.This paper focuses on listed companies in cultural and creative industries,and studies the relationship among media attention,analyst attention,research and development investment and financial performance.This paper defines the basic concepts using the number of media reports to measure media attention,the intensity of research and development to measure R&D,and the rate of return on total assets(ROA)to measure enterprise financial performance.Then,by sorting out and analyzing relevant literatures at home and abroad,four sets of hypotheses are proposed based on technology innovation theory,stakeholder theory,information asymmetry theory and corporate reputation theory.Meanwhile,we selected 160 companies listed on the Chinese cultural creative industry to get 800 samples from 2013 to 2017.The relationship between media attention and corporate financial performance is analyzed by the fixed effect model.Also through Wen's test method,this paper verified the mediating effect of R&D between media attention and financial performance,and the moderating effect of analyst attention.The empirical results show that: For a certain amount of time,(1)The more intensive media attention,the worse the financial performance of enterprises;(2)Media attention will restrain the level of R&D and then the financial performance of enterprises would be decreased;(3)Analysts' attention will reduce the problem of information asymmetry between enterprises and investors,thus reducing the negative correlation between media attention and R&D.Finally,this paper puts forward some suggestions for Chinese enterprises to cope with media reporting behaviors,and puts forward some prospects for the deficiencies still existing in this research.