Media Reports,Investor Attention And Corporate Bond Liquidity Research

After decades of development,China's bond market has become an important part of China's financial market and the most important form of direct financing.But Information asymmetry have always existed,many small and medium-sized investors do not have an advantage in gaining access to information,and investor attention has often been guided by the media.This will lead to unreasonable investment behavior in the course of trading,causing market volatility.This paper explores the impact of media on investor attention and bond liquidity.In the context of China's Financial Market,this paper discusses the impact of media coverage on bond liquidity in the following three aspects: The relationship between investor attention and bond liquidity,the impact of media reports on the relationship as well as investor attention as media reports and bond liquidity between the intermediary role of transmission.Combining Information asymmetry theory with noise trading theory,the study concludes:media coverage can guide the attention of investors and affect the liquidity of bonds by influencing the attention of investors.This paper selects corporate bond data from Shanghai and Shenzhen stock exchanges of China from 2011 to 2018 as research objects,through the construction of multiple linear regression model and model of intermediary effect to carry out empirical testing.Using the Internet search index in CNRDS,a Chinese research and service data service platform,to represent investor attention and the news statistics of Internet financial media,to measure the amount of media reports,and to build a panel data regression model,the bond turnover rate and Amihud are selected as the indicators to measure the bond liquidity.It proves that the investor's attention is positively correlated with the bond liquidity,that is,the higher the investor's attention is,the more the bond liquidity is,and the more the media reports,the higher the investor's attention is,and there is a positive correlation between the number of companies that issue bonds and the interest of investors;media reports can influence the liquidity of bonds and enhance the liquidity of bonds by raising the interest of investors.The results of the robustness test after fixed effect regression still support the hypothesis.This paper makes an empirical analysis on the theoretical basis to study the relationship between media coverage,investor attention and bond liquidity,and confirms the role of media coverage in regulating media coverage,enhancing investor protection and how to better play the role of media supervision and positive guidance has certain guiding significance.