| In recent years,media attention has always been the focus of academic research.The media,as an information intermediary,is an important participant in the capital market.Besides,it is significant for the interpretation of asset mispricing and investor behavior.Until now,China has not formed an effective capital market.There are loopholes in the regulation of listed companies and their shareholders.In addition,information disclosure system is not perfect.Thus,the market is flooded with all kinds of noise.What is the role of the media in the capital market?Does the media help to promote information dissemination,improve the transparency of company,reduce information asymmetry,and thus improve the efficiency of capital market allocation?Or the media interfere with investors’ decision-making by spreading a lot of information,exacerbate investors’irrational thinking,and thus cause the stock price to deviate from the intrinsic value?Some scholars have found that listed companies had manipulated the stock price by the use of mass media.But these studies focus on the analysis of the IPO procedure,equity refinancing and other special time period.There is little literature to study the relationship between the equity pledge of major shareholder and media attention.Although some scholars believe the existence of collusion because the commercial interests between listed companies and the news media,they did not find the way for listed companies to attract media attention.I find that major shareholders of listed companies will issue more important issues to attract media coverage.Besides,they also use other ways to spread the companies’ good news.The positive reports about the company caused a positive response,raising the company’s PE ratio.The higher pricing of the capital market for the pledged companies may be caused by the fact that these companies report more important matters or other information through informal disclosure.This article can be summarized as follows.Firstly,this paper analyzes the motivations of major shareholders of listed companies,who have pledged their shares,to stabilize the stock price and analysis and examines the methods of these major shareholders of listed companies to improve the media attention.Secondly,considering of the reality and the results of the empirical analysis,this paper analyzes the role of the media in the capital market:the media not only act as the information communicator,but also may become a conspiracy to stabilize the stock price of major shareholders.Therefore,this paper puts forward three relevant suggestions:perfect the information promulgation of listed companies,develop relevant management system to regulate the behavior of news media,and improve the relevant laws and regulations about equity pledge. |
