Managers’ Emotional Out Of Control,Media Attention And Corporate Value Damage

As the main body of business decisions,managers formulate business development strategy and control the overall development direction of enterprises.Their behavior plays a vital role in company performance and company value.To some extent,managers are the symbol of the company.In the capital market,due to the existence of information asymmetry between investors and enterprises,investors are skeptical about the information and performance disclosed by the company,and managers use vulgar and crude remarks to respond to investors.In the current accessible media environment,fierce out-of-control emotions and improper remarks are easily spread by the media and amplified by the public.The media captures news materials in conflicts.The public ’s free expression desires to ferment conflicts.Negative emotions will soon be transmitted to the secondary market and cause fluctuations.This paper takes the event of mutual resentment between managers and investors of T company as the research object,and uses case study and event research method to explore the impact of improper remarks made by managers on enterprise value.It specifically analyzes whether the behavior of managers resenting investors will damage enterprise value,the specific performance of its damage,the role of media attention in the impact of value damage caused by this event,and the internal mechanism of enterprise value damage caused by such events.The results show that : enterprise managers through improper remarks on social media platform,the value of the company formed a certain damage,media attention also plays a role.According to the research results,this paper gives corresponding opinions from the perspective of government regulatory agencies,companies,business managers,and investors.The research contributions of this paper are as follows : First of all,a large number of previous studies on emotions have focused on investor sentiment.With the deepening of media attention,managers ’ negative words and deeds are more likely to be captured and amplified,which leads to the emergence of such events.This paper studies managers ’emotions,further explores their impact on corporate value,and deeply studies the role of media attention in this event.Secondly,it deeply analyzes the internal mechanism of enterprise value damage caused by managers ’ improper remarks.Finally,it provides a warning for managers and enterprises to ignore the maintenance of investor relations,and gives suggestions from multiple perspectives to prevent the recurrence of such incidents.