Regulatory Penalties,Media Reports And Executive Turnover

As the supervisor and manager of listed companies,CSRC plays an important role in supervising the listed companies both in legal and compliant operation and in disclosing information timely and effectively.Among these,the punishment of CSRC on illegal behaviors play a role in improving corporate governance and reducing the illegal behaviors.As professional information collectors,processors and disseminators,the media can make up for the deficiencies of laws and governments in the external corporate governance.Although research shows that the improvement of laws can effectively promote the development of financial market and improve the level of corporate governance,due to the rapid development of China's economy,the improvement of laws lags behind the development level of financial market,and more external forces are needed to supervise the management of companies.Media scrutiny is seen as an effective supervisor in emerging capital markets.The purpose of this paper is to study whether the punishment of CSRC under the supervision of media reports will have a significant impact on the corporate governance structure of listed companies.This paper firstly makes a theoretical analysis of the mechanism of improving corporate governance by illegal behavior supervision and media supervision.And then through the empirical research,we selected the 2015-2017 three years' 1231 illegal enterprises sample data,to study if the regulatory penalties of listed companies play a significant impact on executives change,and among them,if the media play a role of external corporate governance supervisor.Results show that the number of CSRC's punishment in general can affect the decision of whether to replace executives of listed companies.And media have played a positive role in supervision.The specific performance is that the not reported violations will not significantly affect executive turnover,and that the reported violations tend to affect executive turnover.But the traditional media newspaper's supervision role is more significant.In addition,with the advent of the information age,the discourse power of the major media is increasing,and the supervision role of the media is significantly improving.Finally,this paper also found that compared with private enterprises without state-owned shares,the supervision effect of regulatory penalties and corresponding media reports on state-owned enterprises is more obvious.Finally,this paper proposes several policy suggestions,including suggesting the CSRCcontinuing to deepen the punishment mechanism for violations,deepening the supervision function of the media,improving the professional manager market to develop a reputation supervision mechanism for media coverage,etc.,which are helpful to improve the external corporate governance mechanism of illegal behavior supervision and media reports.