Study On The Effect Of Media Attention On Accounting Information Quality

As accounting information is a communication bridge between investors and listed companies, low-quality of accounting information would harm the investor benefits and impedes the successful development of capital market in our country. Within the booming developing of media industry, news consensus plays a crucial role in the macroscopic management for Listed Companies, and the management function of media has attracted attention from scholars. Firstly, media attention will enhance the transparence of marketing information, reduce the information asymmetry between listed companies and investors, and increase the companies’ cost which is used to forge accounting information. Secondly, the pressure from public opinion, which is caused by the sensitive character of media, would force handlers to stop speculating, which can increase the quality of accounting information. Based on many domestic and overseas references about media attention and the quality of accounting information, this study chose the theory of accounting supervision, principal-agent, reputation mechanism, asymmetry and stakeholder as theorist basis. At the meantime, this study combines with financial restatement samples and check samples from 2011 to 2013, provides study assumption and builds up a research model.According to the research reports:First of all, media attention to public companies has negative proportion to financial restatement of public companies will help improve the quality of accounting information, because media can reveal the negative news about Listed Companies. Secondly, the negative news about Listed Companies management helps governing administering financial restatement. Thirdly, the districts with low-level government intervention have less obstruction when media collect and verify public companies’ information, lead to better media management effect on Listed Companies. At the last, in the districts with higher-developed media, the correlation between media attention and financial restatement is lower, media shows effective post-supervision functions.