Negative Media Reports On The Private Benefits Of Controlling Shareholders Impact Study

With the rapid development of anti-corruption,many obvious corruption behaviors have been exposed and punished.However,hidden corruption problems such as controlling shareholders' taking advantage of their positions to gain private interests are common in the capital market.The "farce" of listed companies,such as Huaze cobalt nickel,Monkey King Group's major shareholder's embezzlement case,the illegal guarantee of major shareholders of Zhongzhu Medical Co.,Ltd.and the "invisible" actual controller of Sihuan biological Co.,Ltd.in recent two years,reveals the seriousness of the problem of controlling shareholders' embezzlement.Controlling shareholders take advantage of their own advantages to seek private interests and regard listed companies as "cash machines",which not only damages the legitimate rights and interests of small and medium-sized shareholders and enterprises,but also poses a certain threat to the stable and healthy development of the capital market.However,at present,China is in the developing stage of emerging markets,and the imperfect legal system has limited effect on corporate governance.Therefore,the urgent task is to actively find an alternative legal mechanism to restrain the controlling shareholders from seizing private interests.With the continuous progress of Internet technology and the growing strength of the media,the view that the media can be used as a supplementary governance mechanism of imperfect legal system has been affirmed by scholars,and the relevant literature of media participation in corporate governance has sprung up.In view of this,based on the perspective of media playing a role in corporate governance,this paper analyzes the relationship between negative media reports and private earnings of control rights,and embeds the internal control and external marketization process of the company for classification and discussion,using the listed companies with large amount of equity transactions in 2013-2018.The results show that:(1)compared with the companies that have not been reported by the media,the level of private earnings of control of the companies that have been reported in the next year is significantly reduced;(2)the inhibition effect of negative media reports on private earnings of control of controlling shareholders is stronger in the companies with poor internal control;(3)the governance effect of negative media reports on private earnings of control is lower in the degree of marketization The area is more significant.The above conclusion shows that the media,as an alternative mechanism outside the law,has a restraining effect on the private benefits of the right of control,and the external regulatory role of the media can make up for the imperfection of the governance mechanism of internal control and marketization to a certain extent,so as to provide more theoretical and empirical support for the governance theory of the media,and also provide more theoretical and empirical support for the governance of the controlling shareholders' private interests for the relevant departments new ideas.