The Effect Of Media Exposure And Quality Of Financial Report On Agency Cost

The problem of agency has always been a hot topic for scholars to study.Mitigation of agency problems is a multi-pronged project,we have to proceed from the internal governance,but also with the help of external mechanisms.In the internal governance.A few scholars has studied from the quality of the financial report.On the external mechanism,media supervision is a better external restraint mechanism.Especially the network developed today,the role of the media supervision has been fully played.In addition,Regional culture will have a certain impact on corporate governance and also have a certain impact on the behavior of executives and shareholders.So the regional character will have an impact on the relationship between media supervision,quality of financial reporting and agency costs.Based on this,the paper chooses the empirical evidence of year 2013-2015 of A-share in Shanghai and Shenzhen,and studies the influence of media supervision and quality of financial report on agency costs.Firstly,the paper defines the concept of two kinds of agency costs,media supervision,quality of financial reporting and regional character.Analyzing the relationship between media supervision,quality of financial report and the two kinds of agency costs.And according to the theory of geographical location and character "four liquid theory",the paper is divided regional character into two groups(phlegmatic regional character and choleric regional character),to studies the influence of regional character on the relationship between media supervision,quality of financial reporting and agency costs.So the paper puts forward the research hypothesis.Secondly,according to the study of selected samples and data,and determine the research variables,the establishment of research models.Finally,according to the research variables and the establishment of the model for empirical testing.The results show that:(1)Media supervision has a significant inhibitory effect on the two kinds of agency costs.According to the regional character grouping,the phlegmatic regional character enhances the inhibitory effect of the media supervision on the two kinds of agency costs,and the choleric regional character reduces the inhibitory effect of media supervision on the two kinds of agency costs.(2)The quality of financial reporting has a significant inhibitory effect on the two kinds of agency costs.According to the regional character grouping,the phlegmatic regional character enhances the inhibitory effect of the quality of financial reporting on two kinds of agency costs.The choleric regional character weakened the effect of the quality of financial reporting on the two kinds of agency costs.(3)Media supervision,tne quality of financial reporting on the impact of the two kinds of agency costs have some interaction.Media supervision and quality of financial reporting have the effect of mutual substitution on the first kind of agency costs.Media supervision,the quality of financial reporting have the effect of mutual promotion on the second kind of agency costs.The paper has made some innovations to the research content and research theory from the perspective of regional character.On the basis of the research conclusions.the paper puts forward some policy suggestions to alleviate the agency problem from the aspects of media supervision and quality of financial reporting.