Research On Media Attention, Corporate Governance And The Effectiveness Of Internal Control

In this paper, by analyzing the media coverage the enterprise market reaction relatedcases introduced the concept of media attention. In the corporate separation of ownershipand management rights, the rule of law unsound background, as an important force in theexternal media may have a huge impact on the internal governance of listed companies andthe effectiveness of internal control. Research started on the relationship between mediaattention and corporate governance, combined with media governance mechanismsproposed by many scholars, originality authors put forward the proposition that mediaattention affect the effectiveness of internal control.Firstly, the article begins with the statement of the background and significance of thestudy propositions, builds the paper’s basic ideas and the frame structure and describes theinnovations of this article that might exist. Then through the literature review, the authorsexplore in depth the relationship between media attention and corporate governance, andthe relationship between corporate governance and the effectiveness of internal control,providing guidance for further research ideas.Secondly, on the basis of theoretical studies, the article pointed out that therelationship between media attention, corporate governance and the effectiveness ofinternal control is based on principal-agent theory, reputation theory and signaltransmission theory. There follows further explained the concept of the effectiveness ofinternal control and media attention, specifically defining its scope, measuring methods.Then, combined with qualitative analysis and quantitative research, this paper select2009-2012real estate industry in Shanghai and Shenzhen A-share listed companies assamples. By constructing models, defining variables, using principal component analysisand linear analysis, author calculated the composite score of the effectiveness of internalcontrol.Finally, the variables were analyzed by descriptive statistics, correlation andregression analysis, the results effectively validate the hypothesis proposed previously.The article concludes that the media coverage and attention can significantly improvethe level of the effectiveness of internal controls, effectively enlarge the internal effect of corporate governance, obviously activate internal governance mechanisms, resulting in a"catfish effect."...