Research On Media Supervision And Accounting Conservatism

In recent years, the power of the media is constantly enhanced, as an external supervisor, has also become a hot spot of academic research. Media monitoring as an external governance mechanism, plays an increasingly important role. First, the media as an information intermediary, plays an active role in investor protection; media through its own means of transmission to pass information to investors, making investors get more information to make investment decisions; secondly, the media as external supervisors plays a role in improving corporate governance,media reports to improve corporate governance of listed companies by way of a reputation mechanism, administrative mechanism. From the perspective of media monitoring, to 2002 to 2012, listed companies as samples to study the relationship between the media monitoring and accounting conservatism among examines media coverage of accounting information to improve the robustness in terms of whether or not to play a positive role.The empirical study is divided into two parts, one is concerned about the impact of media on the capital market; media reports of listed companies will first impact on the capital market, the turnover and the information content of stock shares as a capital market reaction the substitution variables, the influence of media coverage on the capital market. Another part is the impact of media monitoring on accounting conservatism; the role media play in corporate governance of listed companies can improve the robustness of accounting information is the focus of this study.The empirical study found that media reports of listed companies can affect the capital markets, the more the number of media reports, the corresponding shares of the higher turnover, the information contained in the content shares will be higher; at the same time improving accounting robustness, the negative media coverage could improve the company’s accounting conservatism, but positive reports and can not play this effect, the opposite of positive coverage will increase the company’s accounting conservatism weakened.Overall, the media as an external supervisor, in corporate governance has indeed played an active role; so we have to pass a variety of ways to ensure that the media play an effective supervision and positive, on the one hand, the media must continue to improve their own quality to the public provide high-quality coverage; on the other hand, the media must play its role in providing good governance external conditions.