Empirical Research On Media Attention And Earnings Management Methods Choice Of Listed Company

In recent years, with further in-depth study of the academic issues of earnings management,single earnings management study has been unable to keep up with the times, the latest research is the accrual and real earnings management, namely these two ways of earnings management binding. In developed countries, social governance role of the media has become increasingly prominent force, the media once considered par in legislative, judicial and administrative "the fourth party of power." Media more as an effective corporate governance mechanisms outside gets the recent academic concern. This paper explores the role of media attention on the governance of listing Corporation’s earnings management behavior, that is, media attention how to affect the choice of two kinds of earnings management. Futher, Based on Upper Echelons Theory, bounded rationality managers because of differences in background characteristics formed its own different cognitive abilities and values, psychological preferences as well as behavior, which are all major impacts on the manager’s decision. Therefore, the article introduces the management background characteristics(age, tenure, team size, etc.), to explore the impact of the media in the media impact on the choice of earnings management in the role of the regulatory role.Specifically, Taking the 2008-2014 A-share listed companies in the sample overall, after screening singled qualified 608 listed companies as samples, from the perspective of the media attention of these listed companies, real and accrual earnings management issues were discussed research, and managers features introduced as the moderator, to explore its possible regulation on the impact path. The two-stage regression results show that the media attention change can cause earnings management options of listed companies. With the enhancement of media attention,namely, the listed companies will take more accrual earnings management for its earnings, while reducing the use of such damage to the company’s earnings management intrinsic value approach.Further, the company senior management team longer average tenure, the greater the age, the bigger the overall amount of the team, the more so that the company can reduce the use of real earnings management. While media attention changes affect accruals earnings management practices in the statistical sense is not significant, but the effect of corporate governance of mediaattention can still be reflected. The results of this paper has a certain enlightenment about earnings management governance of listed companies and senior management team building.