Audit Quality On Media Governance Effects

Based on the A-share listed companies’ data, our paper investigates whether thequality of audit affect the corporate governance role of media. The investigation findsthat the quality of audit would affect the corporate governance role of media. In thesample of no BIG4,the likelihood of non-standard unqualified auditing opinion wouldbe improved when the company has been the subject of negative press coverage. Butin sample of BIG4, there are no similar result.Another investigation finds that in thesample of good audit supervision, media supervision can’t restrain earningsmanagement. But in the sample of bad audit supervision, media supervision canrestrain earnings management. The policy means that auditors should make full use ofthe information of meida under the conditions of lacking of high quality of audit.This paper’s structure is shown below:Chapter1, introduction. This part introduce the research questions, thesignificance of this research, research methods, research conclusion and maininnovative points, the paper structure.Chapter2, literature review. this part defines the research about audit and mediasupervision at home and abroad. then describes the underlying theories that supportthis study.Chapter3, the theoretical analysis and the hypothesis suggest. This part analysisthe research conclusion by related theories, and raises the hypothesis through thetheoretical derivation.Chapter4, this part first reviews the models to measure，analysis the researchconclusion by related theories, and raises the hypothesis through the theoreticalderivation.Chapter5, And then the author makes a robustness test by changing thecalculation method to the investment spending and the measure of the centralenterprises’over-investment separately.Chapter6, the conclusions and limitations. Summarizing the conclusion of empirical study and analyzing the reasons. And then putting forward thecorresponding improvement measures and suggestions.