Research On The Impact Of Negative Media Coverage On Inefficient Investment Of Enterprises

The existence of investment inefficiency means that the real investment cost of the company does not reach an agreement with the optimal investment.On the one hand,It damages the interests of external investors and leads to the decline of enterprise value.On the other hand,it will waste social resources and affect macroeconomic operation.A large number of studies show that inefficient investment exists in almost all countries,most of which occurs in developing countries,and the investment inefficient behavior is rampant.Therefore,it is necessary to study the inefficiency of investment.At present,the research topic of inefficient investment report materials that can be consulted is basically to analyze its formation reasons and operation mechanism,and there is no in-depth study on external management mechanism such as media.In general,how to govern inefficient investment is still a hot issue in academic research,and its mechanism is still worth exploring deeply.In particular,there is little research on how the external governance factor--negative media coverage affects inefficient investment.Further studies on the mechanism of negative media reports affecting inefficient investment are rare.Based on the research basis of negative media reports,the author selected domestic A-share listed enterprises from 2009 to 2018 to analyze whether negative media reports would have an impact on the company’s inefficient investment.Through the research,it is concluded that the negative media reports have a certain positive effect on reducing the occurrence of corporate investment inefficiency.The findings held true when the endogeneity problem was examined.Specifically,negative media reports to the enterprise over-investment and under-investment are produced obvious relief,investor sentiment in the efficiency of investment and the media play a role of intermediary between negative reports,the media reported negative affect investor sentiment to inhibit enterprise over-investment,alleviate under-investment phenomenon.It is found that institutional investors contribute to negative media reporting on investment inefficiency,and both pressure-resistant and pressure-sensitive institutional investors have significant positive effects.This paper expands the governance effect of negative media reports,which is of great significance in actively improving China’s investment efficiency.