Earnings Management、Media Attention And Stock Price Synchronicity

The opportunistic behavior caused by the agency conflict leads to the phenomenon of stock price synchronicity.In order to disguise self-interest behavior,the managers carry out earnings management by whitewashing financial reports,which reduced the companies' specific information and made the trend of the companies' stock price consistent with the trend of the markets' stock price("same ups and downs").Earnings management enhances the level of stock price synchronicity,reduces the efficiency of resource allocation in the capital market,and is not conducive to the healthy development of the capital market.Media attention,as an important part of the companies' external governance mechanism,can excavate and spread companies' specific information,supervise managers' information disclosure behavior,effectively increase the companies' specific information in the capital market,and affect the relationship between earnings management and stock price synchronicity.Therefore,it is necessary to study earnings management,media attention and stock price synchronicity.This paper takes the non-financial listed companies in China's A-share market from 2014 to 2018 as a research sample.It mainly studies the impact of earnings management on stock price synchronicity,the media attention to the relationship between earnings management and stock price synchronicity,and the influence of the property rights on the above relationship is described.The study found that earnings management,as a way to whitewash financial reporting,hides companies' specific information,enhances stock price synchronicity.Compared with state-owned enterprises,non-state-owned enterprises are more motivated to perform earnings management due to high financing constraints and market competition pressures,resulting in higher stock price synchronicity.Furthermore,research found that media attention can excavate and spread companies' specific information,supervise managers' information disclosure behavior,thereby increasing the companies' specific information in the capital market and weakening the positive impact of earnings management on stock price synchronicity;Compared with state-owned enterprises,state-owned enterprises enjoy political support,and the managers have less pressure on the managers' market competition.These two factors have reduced the external governance role of the media to a certain extent.This paper clarifies the relationship between earnings management,media attention,and stock price synchronicity,and finds that the governance role of media attention in state-owned enterprises has been reduced from the perspective of the property rights.This paper explores the impact of earnings management on stock price synchronization from the perspective of media attention,enriches the literature on earnings management and stock price synchronicity,and provides a new perspective for research in this field.Second,this paper analyzes the differences in media attention to the role of external governance under different properties,and enriches the relevant literature.The research conclusions of this paper help government departments to strengthen the promotion of media industry construction and deepen the reform of state-owned enterprises,for providing more developed market environment for giving full play to the role of external governance of the media;The research conclusions of this paper help government departments to improve the construction of accounting information disclosure system,and increase the companies' specific information in the capital market;The research conclusions of this paper help regulatory authorities to found interactive mechanism and supervise of accounting information disclosure,for improving market supervision mechanism.