The Study Of The Effects Of The Media On The Quality Of Information Disclosure

In view of that investors make decisions based on financial and non-financial information disclosed by listed companies, they are inevitably inclined to pay great attention to the quality of information disclosure. Though the information disclosure system and the regime of information disclosure regulation in the capital market have become more and more perfect, a majority of new problems indicate that the information disclosure of public companies still needs to be developed. With the rapid growth of capital market, media which serves as the communication channel among public companies, stock exchange and investors is able to have a remarkable influence on the behaviors of listed companies by means of reputation mechanism as well as introduction of the interference from the administrative organizations. Then, will such influence be based on some theories when the behavior of listed companies is referred to information disclosure? And what will the influence be in the real world?So far, many scholars have focused on the corporate role of media and the media’s influence on asset pricing. Also, the affecting factors and measurements of information disclosure quality attract many scholars’attentions. There is rare literature which studies the relation between media and the quality of information disclosure, but the quality of information disclosure have a remarkable influence on the investors’decisions. From the importance of investor protection, basing on improving the quality of information disclosure, this paper examines how media does impact on the quality of information disclosure and whether exists a difference of the effect between negative press coverage and non-negative press coverage, or between politically-oriented media and commercially—oriented media. I hope this paper is useful for the theory and practice filed to understand the corporate governance role of the media in China and find the mechanism of promoting the quality of information disclosure.This paper combines methods of normative research and empirical research. Firstly, it reasonably defines the connotation of the information disclosure quality and concludes that it should include two basic elements:integrity and timeliness through three ways. So based on this two basic elements, this paper puts forward three series of hypothesis:how media does impact on the quality of information disclosure and whether exists a difference of the effect between negative press coverage and non-negative press coverage, or between politically-oriented media and commercially-oriented media. During empirical test, this paper adopts statistics analysis to make clear the trend of information disclosure quality in china, and then through non-parametric test, multiple linear regression analysis and Logistic regression to test all hypothesis. The study finds that media has a significant influence on integrity, and negative press coverage and non-negative press coverage, as well as politically-oriented media and commercially-oriented media have a different effect on integrity. As for the timeliness, media doesn’t significantly affect timeliness but negative press coverage does. However, politically-oriented media and commercially-oriented media have no significance difference to influence timeliness.The paper is divided into six parts, and the major research content of this essay is as follows:The first part is the introduction. In view of the achievements and challenges of information disclosure construction as well as the media’s impact on corporate behavior, this paper puts forward research motive and significance. Then, it proposes content, ideas and methods of this paper.The second part is the theoretical analysis and literature review. At first, it conducts a reasonable review of available literatures in three aspects:media attention, the quality of information disclosure and the relation between these two items. Then it put forward the quality requirements of information disclosure by exploring the connotation of related words, comparing information disclosure quality with accounting information quality and carding information disclosure quality requirement put forward by domestic and international authoritative institutions. At last, it theoretically analyses of media influencing the quality of information disclosure by means of reputation mechanism as well as introduction of the interference.The third part is the empirical design of media affecting the quality of information disclosure. On the basis of theoretical analysis in Chapter two, this section contains hypotheses, sample selection, variable design and model construction.The fourth part is the empirical test. This section includes descriptive statistics of media and the quality of information disclosure, multiple regressions of media affecting the quality of information disclosure, grouping regression of testing the different influencing between press coverage and non-negative press coverage, and between politically-oriented media and commercially-oriented media. Finally, by using the variable substitution and other methods, I do the robustness test.The fifth section is about the empirical conclusion and suggestions. According to the empirical result, this essay draws several conclusions and based on conclusions, this paper gives some reasonable and practicable suggestions.Last, in the sixth section, the paper describes the limitation and shortcomings as well as the research direction in future.This article’s innovation mainly manifests in that it explore the corporate role of media based on the perspective of information disclosure quality. By means of exploring the connotation of related words and carding information disclosure quality requirement put forward by domestic and international authoritative institutions, it concludes that information disclosure should include two basic elements:integrity and timeliness.So based on these two perspectives, this paper examines how media does impact on the quality of information disclosure and whether exists a difference of the effect between negative press coverage and non-negative press coverage, as well as between politically-oriented media and commercially-oriented media.