A Study On The Impact Of Media Attention On The Violations Of Listed Companies

In recent years,with the diversified development of media,the role of media reports in the field of corporate governance has become increasingly obvious.At the same time,with the diversification of readers,more and more investors and regulators pay attention to the media reports on listed companies.In 2019 alone,each A-share listed company in China was reported by the media about 224 times.Because the listed company has the obligation to disclose information in time,once the company does not disclose information in time,it is likely to be concerned and reported by a large number of media,which will bring different degrees of negative impact to the listed company.In this context,the media’s prior supervision is of great significance to the listed companies’ illegal behavior.In recent years,China Securities Regulatory Commission(CSRC)has been strengthening its supervision.In 2019 alone,China Securities Regulatory Commission(CSRC)and its local offices reported 890 violations of listed companies.Considering that the CSRC and other supervision organizations make corresponding punishment after the company’s violation of regulations,it has a post supervision effect.However,when the company carries out the illegal operation,it may not consider the consequences of being punished afterwards.Therefore,an external supervision force is urgently needed to supervise the decision-making behavior of the listed company in advance.As the fourth power,media can effectively play an external governance role.This paper uses the information of A-share listed companies in Shanghai and Shenzhen in 2010-2018 as the sample data to study the effect of media attention on listed companies’ violations.In order to control endogeneity,the leading lag method is adopted.The results are as follows:(1)the higher the media attention,the lower the number of violations and the lower the probability of violations in the next year;(2)By dividing the media into network media and paper media,the results show that the former reports of network media and paper media can inhibit the illegal behaviors of listed companies;(3)further,the paper media can be divided into policy oriented media and market-oriented media,the research shows that policy oriented media can more effectively inhibit the illegal behaviors of listed companies;(4)compared with media Positive reports and negative reports can effectively restrain the illegal behaviors of listed companies.Furthermore,this paper discusses the mechanism of administrative intervention and reputation of media.The specific results are as follows: the influence of media on corporate irregularities can be achieved through administrative intervention,especially for state-owned enterprises,the media’s pre supervision effect is mainly achieved through administrative intervention;in the aspect of verifying the media reputation mechanism,the empirical results show that the mechanism of media’s influence on listed companies’ irregularities through reputation has not been verified.In the part of robustness test,this paper analyzes the empirical results from two aspects: the type of replacement media and the factors of annual major events,and the test results are consistent with the previous article.Finally,this paper puts forward relevant suggestions from the four different perspectives of the listed company management,regulators,investors and the media itself.This paper enriches the influence of media attention on corporate governance by discussing the influence of media attention on corporate irregularities.We can measure the company’s violations from different dimensions and enrich the evaluation indicators of the company’s violations.In addition,combined with the actual situation in China,this paper discusses the different influence mechanisms of the media.