A Study On The Corporate Governance Role Of The Media

Good corporate governance is the necessary condition to enhance competitiveness and improve the operating performance of enterprises, and it is also the basic guarantee for stable development of capital markets. As a tool for the transmission of information, and through the aggregation and dissemination of information, the media achieves and strengthens the impact of corporate governance by a wide range of stakeholder groups .The effect of social norms to corporate governance is also better fulfilled. Highly prevalence of the media and its managing effect is extremely important to protect the interests of investors, reduce systematic risk, and ensure a fair, effective, transparent and sound capital market surveillance system.Based on China's social reality, this paper has integrated theoretical analysis, statistical analysis, case studies and other methods to study the media's role in monitoring corporate governance. First the modern theory of the firm was used to explain the reason why media monitoring had effects on corporate governance. Then the information theory was used to analyze its factors and characteristics. On these bases, with the integration of a large number of statistics and cases, the paper analyzed the active role and shortcomings of the media and the embarrassing litigation.This article holds the idea that the media's role in monitoring corporate governance is to solve the problem of information asymmetry, supervise the structure and mechanism of corporate governance. The main role is to solve the problem of information asymmetry, and the point is to expose accounting fraud. As a result of the conflicts of interest between media and corporations, the government's intervention to the media weakens the independence of the media, as well as the lack of media self-regulation, there are still many misunderstandings and errors tend to impede the media watchdog role of corporate governance.Therefore, we must weigh and value the company's reputation and the rights of media to ensure the rights of media supervision to corporate governance from the law. Also we have to strengthen the competitive of media market so that the media have sufficient driving force for the exercise of supervision .The media should be loyal to the country and the people, benefit society and the public, respect for press law and abide by professional ethics to continuously develop credibility in the improvement. The society should create an understanding, affirmative atmosphere to support the monitoring of corporate governance by media, so that China's media monitoring of corporate governance will be always along with the establishment and improvement of socialist market economic system.