Performance Commitments,Media Attention And The Risk Of Share Price Collapse

As the global economy continues to weaken due to the impact of the epidemic,companies are using mergers and acquisitions(M?A)to optimize the allocation of resources and send positive signals to investors to stimulate the rise in share prices in order to survive and grow through the difficulties,in addition to tapping their own strengths to maintain good business growth.However,with the increase of M?A events,the hidden problems are gradually highlighted,and the issue of performance commitment has received more attention,whether it will have an impact on the collapse of the company's share price has gradually become a hot topic.At the same time,due to the development of Internet technology,the media is playing an increasingly important role in the capital market in terms of information transmission and monitoring,which has an important impact on stock prices.To this end,this paper explores the impact of performance commitments on stock price crashes and the role of the media in this impact based on signaling theory,behavioral finance theory and principal-agent theory.Using listed companies that completed M?A restructuring during 2007-2019 as the research sample,this paper explores the impact of performance commitments and media attention on the risk of share price collapse,and further investigates the impact of media attention on the relationship between performance commitments and share price collapse risk.The following conclusions were drawn from the empirical tests: performance commitments did not effectively alleviate the information inequality between the two sides of the transaction,and the signing of performance commitments exacerbated the future share price collapse of the company;media attention was negatively related to share price collapse,and the higher the media attention,the more it could alleviate the future share price collapse of the company;the media,as an external monitoring body,played a positive moderating role in performance commitments on share price collapse,and media attention to the company could effectively mitigate the positive impact of performance commitments on share price collapse.In further regression analysis,the study found that: the higher the growth rate of commitment,the higher the likelihood of a company's share price collapse;the more significant the moderating effect of media on performance commitments and share price collapse in non-state-owned enterprises compared to state-owned enterprises.This paper puts performance commitments,media attention and share price collapse risk under the same framework and explores the role played by media attention in performance commitments on share price collapse risk,which enriches the research on share price collapse risk and helps investors to understand performance compensation commitments and avoid irrational investment brought about by positive news such as performance commitments in the market,and also helps the capital market to recognise the important role of the media as an external watchdog in maintaining share price stability and promoting healthy development of the capital market.