Analysis Of Governance Effects Of Media Reports And Government Supervision On Disclosure Of Major Defects In Longlive Internal Control

In recent years,various financial scandals emerge one after another in the capital market,such as financial fraud incidents of Wanfu Shengke,Greenland and Xintai Electric,which are related to major defects in the company’s internal control.These behaviors cover up the real business performance of listed companies,mislead investors and disrupt the order of the capital market.Based on this,it is of great significance to study the disclosure and supervision of major defects in the internal control of listed companies.At present,scholars mainly study the status quo,influencing factors,economic consequences,rectification and other aspects of disclosure of material defects in internal control,and find that there are problems in disclosure of material defects in internal control,such as concealment,motivation selection,selective disclosure and imitation disclosure.However,there are few studies on the reasons why listed companies tend to conceal major defects in internal control,the role of media reports in the disclosure of major defects in internal control,and the difference between government regulation and media reports in the governance effect of listed companies.The author will solve the above problems through the study of this paper.Through case studies,this paper takes Longlive as the research object to explore the concealment,disclosure,governance and rectification process of its major internal control defects,and builds this process into a theoretical framework of "concealment--disclosure--inhibition--rectification" of major internal control defects.The author to dig deeper into the case of financial fraud,concealing the major defects of internal control,in-depth analysis of the controlling shareholder equity pledge and financial difficulties affect the mechanism of the disclosure of internal control defects and path,summarizes the existing concealing major defects of internal control of listed companies,can through the media to reveal the problem,causing the attention of market and government regulators,By means of coercion,government agencies urge listed companies to make true disclosure and timely rectification,so as to protect small and medium investors and maintain the good order of the capital market.The research contribution of this paper is to remind investors and government regulators to pay attention to the behavior of controlling shareholders pledging a high proportion of shares for many times,and to help stakeholders accurately identify the "true face" of listed companies.Through in-depth study of the governance effects of media reports and government regulation,it is found that media reports can trigger government regulation,and there is a synergistic effect between the two,and relevant suggestions are put forward to improve the governance level of listed companies and improve the two external regulatory means.