Authoritative Financial Media Attention, Corporate Governance And Stock Pricing Efficiency

Using the price signal mechanism of the stock market to realize the allocation of financial resources is the core function of the capital market,and the stock pricing efficiency is also one of the important indicators to measure the maturity of the capital market.The high efficiency of stock pricing indicates that the listed company's information reflected in the price is timely and sufficient,scarce capital is more likely to flow to areas with high returns,and the resource allocation function of the capital market can be exerted.Traditional asset pricing theory assumes that information is perfect and investors are completely rational.On this basis,scholars explore the roots of risk premium.However,perfect information does not exist in the operation of the real market.The collection and processing of information is costly.Investors are not completely rational either.Their own cognitive bias will affect investment decisions which further affect the stock market price.The media has the function of information dissemination in the capital market.In this process,how news reports affect investors'perceptions and emotions,which in turn causes stock price fluctuations,is becoming an important part of capital market research.However,in practice,in the face of external economic pressure or fierce competition in the same industry,some media may make biased reports for their own interests.In order to enhance their own visibility,media reports on companies will also pursue a sensational effect.Nevertheless,the authoritative financial media in the capital market still plays the role of a strict"information reviewer".Conpared with the Internet media,the authoritative media has more strict and reliable control over the sources.So the authoritative financial media has a stronger impact on corporate events(whether positive or negative),and has a far-reaching impact on investor decisions and colpanies.Some scholars have done a lot of research on the impact of media reports on stock pricing from the perspective of information function and emotional function of news media.In general,the existing research mainly analyzes the impact of media reports on stock prices from information effects and emotional effects,and rarely discusses its impact on stock pricing efficiency and the role of corporate governance in it.This paper explores the impact of authoritative financial media reports and concerns on stock pricing efficiency,and further analyzes whether corporate governance plays a mediating role in this impact.Focusing on this theme,this paper selects 945 A-share companies listed on the Shanghai and Shenzhen Stock Exchanges from 2010 to 2018 as a research sample,and obtains relevant sample data of listed companies through "China's important newspaper full-text database",WIND database and GENIUS FINANCE.On the basis of theoretical analysis,this paper uses the fixed-intercept variable intercept model to explore the impact of authoritative financial media reports and concerns on stock pricing efficiency,and draws on the median effect test methods to further confirm if the two agency costs play a mediating role in the relationship between authoritative financial media reports and stock pricing efficiency.The main conclusions of this paper are as follows:(l)The greater the number of media reports,the lower the price delay of the company's stock,and the more company-specific information contained in the stock price.Reports from authoritative financial media have alleviated the degree of information asymmetry,and information is more easily accepted by the market.(2)The media mainly achieves the effect of improving stock pricing efficiency through neutral reports,and either positive or negative reports will improve stock pricing efficiency.This conclusion reflects that the authoritative financial media reports have more played the role of information transmitters,which can reduce the cost of investors to obtain information related to the company,and to some extent,enhance the incentives for investors to obtain information,which allows investors to release more heterogeneous beliefs in stock trading.(3)In this paper,two types of agency costs-the management expense ratio and other receivables/total assets-are used to carry out mediating effect.The empirical results show that both types of agency costs play a partial intermediary role in the relationship between media reports and stock pricing efficiency,indicating that authoritative financial media reports have improved the corporate governance level by reducing the agency cost,thereby improving the efficiency of stock pricing.(4)Compared with market-oriented media,policy-oriented media has a greater impact on stock pricing efficiency.The reason may be that investors pay more attention to media reports with"official" colors?although policy-oriented media is weaker than market-oriented media in terms of timeliness and depth,but policy-oriented media reports are kinds of administrative recognition.