Research On The Impact Of Media Reports On The Internal Control Quality Of Listed Companies

At the beginning of the 21 st century,many cases of accounting fraud in the United States exposed the potential drawbacks of the internal control system s of listed companies.Our government also gradually realized the importance and urgency of improving the internal control quality of listed companies,and promulgated a lot of relevant laws and regulations on internal control constructions and implementations.The promulgation of relevant laws and regulations had alleviated the problem of internal control failure.However,for China at this stage,the establishment and improvement of a formal legal system cannot be achieved overnight.As an important external informal supervision mechanism,the media has paid extensive attention and recognition to the continuous supervision of the internal control quality of enterprises.Therefore,it is of great theoretical value and practical significance to study the influence of media reports and different types on the internal control quality and the specific influence path.By reviewing previous studies of scholars,media reports were classified from different perspectives,and based on market pressure theory,reputation theory,and government regulation theory,the impact of media reports and their different types on the internal control quality of listed companies was deeply studied.And after an in-depth analysis of China's actual national conditions,it was found that at this stage,media reports in China have affected the internal control quality of listed companies through the intervention of administrative agencies.In the study,the internal control quality of listed companies was taken as the explained variable,media reports and its different types were taken as explanatory variables,administrative agency intervention was taken as intervening variable to construct models to reflect the relationships of the media reports,the intervention of administrative agencies,and the internal control quality.We constructed three models about them.And SPSS statistical software was used to analyze China's Shanghai stock A shares that the economic data of listed companies in the manufacturing industry from 2014 to 2016 were conducted to multiple regression analysis and tested the robustness of the regression results.The empirical results show that media reports,negative media reports,and non-negative media reports all have a positive impact on the internal control quality of listed companies,But compared with non-negative reports,the impact of negative reports is even greater;the media conducts in-depth reports,retelling reports,follow-up reports,and one report about negative news on listed companies also have a positive impact on the internal control quality of listed companies,but in-depth reports and follow-up reports have more significant effects than retelling reports and one report.Moreover,through the mediating effect test,it also verifies that at this stage,media reports in China have affected the internal control quality of listed companies through the intervention of administrative agencies.Finally,according to the empirical results and the actual situation,putting forward a series of targeted countermeasures and suggestions that the government should strengthen the supervision and guidance of the media industry,the media organizations should strive to enhance self-discipline,and listed companies should actively reduce information asymmetry from three perspectives of the government,media organizations and listed companies to create a favorable supervision and governance environment for media reports and effectively promote the quality of internal control of listed companies.