Media Attention,Internal Control And Debt Financing

In recent years,our party and country have attached great importance to the construction of ecological civilization and believe that ecological civilization is a"millennium plan" related to the well-being of the people and the future of the nation.China’s heavily polluting industry has played an important role in promoting the development of the national economy,but its extensive development has also brought many environmental problems,which has seriously affected China’s economic development and the people’s quality of life and happiness.On the other hand,the cost investment of heavy pollution industry in environmental pollution control is far greater than that of other industries,and this kind of cost has gradually become an obstacle to the sustainable development of the company,and the general environment of market financing is becoming less and less optimistic.As a key part of external governance,news media’s positive or negative reports on enterprises will send effective enterprise information to investors in the capital market.This paper will explore the impact of positive and negative media reports on the debt financing of heavily polluting enterprises through the objective,fair and independent characteristics of external media.On the basis of literature analysis and theoretical analysis,through the theoretical analysis of corporate debt financing by news media,this paper examines the impact of external media on corporate debt financing and the regulatory effect of internal control from the external perspective of media and the internal control of enterprises,taking Shanghai and Shenzhen listed companies in 2016-2019 as an example.The research shows that:(1)positive media reports can reduce the debt financing cost of Listed Companies in heavy pollution industries,while negative media reports will increase the debt financing cost of Listed Companies in heavy pollution industries.(2)In the sample of heavily polluting enterprises,internal control plays a strengthening role,that is,the better the internal control,the more positive media attention is conducive to reducing the cost of corporate debt financing;Negative media attention is the opposite;(3)For listed companies with different property rights,the impact of positive news reports on their debt financing is obviously different.It is mainly reflected in:in the heavy pollution industry,positive news reports have a greater impact on the debt financing cost in non-state-owned enterprises,while negative news reports have a much greater impact in state-owned enterprises.Further research shows that positive reports can enable enterprises to obtain more debt financing,expand the scale of debt financing,and the more likely they are to obtain long-term debt,while negative reports have the opposite effect;Internal control also has a moderating effect in the empirical study of debt financing scale and debt maturity structure.In addition,in state-owned enterprises and non-state-owned enterprises,the impact of media attention on the scale of debt financing is basically the same as the cost of debt financing,but the impact on the debt maturity structure is not as obvious as the first two.Then,the robustness test is carried out by setting the comprehensive media attention and changing the explained Variables.Finally,relevant suggestions are put forward.In addition to the improvement of the enterprise’s own governance structure and relevant internal control systems,the media should also accelerate the industry reform,enhance the impartiality,objectivity and accuracy of the media.This paper hopes to study the impact of the power of external media on corporate debt financing,so as to help promote the improvement of debt financing ability and related transformation of Listed Companies in heavy pollution industries,and promote the healthy and sustainable development of enterprises.