Media Concern, Earnings Management And Stock Price Crash Risk

China’s securities market has formed the characteristic road which adapts to Chinese economy and context after a period of ups and downs,especially in recent years.The number of listed companies is larger and larger.The investor enthusiasm is rising and the supervisory system is becoming more and more complete.All the same,there are also a variety of contradictions,such as enterprise violations and the credit boom and bust.Secretary-General Xi Jinping put forward the new requirements for the stock market in the 11 th Central Committee’s Leading Group Conference.It is important to prevent and mitigate the financial risks,and speed up the formation of stock market for complete financing function,strongly basic system,efficient market regulation and preferable investor rights protection.Economic transition can not be separated from the healthy capital market.The surge in stock prices will hit investors’ enthusiasm,affect the continuous operation of listed companies,and even lead to global economic panic.Thus it can be seen that the study of stock price crash risk has a certain practical significance.The fundamental source of the stock price crash risk is that management will hide negative in-company news by means of earnings management to achieve their self-interest.This will cause information asymmetry between the company and investors.Lower earnings quality usually has higher stock price crash risk.As an important means of delivering and receiving information,media can relieve the information asymmetry,especially online media.From the 18 th National Congress of the Communist Party of China,the Central Organs put a high value on the development of traditional media and new media.So we try to explore whether the media at this stage can play a positive part.This paper takes the enterprises of A-share companies as samples from 2011 to 2016,and analyzes the impact of media on companies.At the same time,in order to study whether the effect of media on stock price crash risk will be different,we also do classified analyze for different earnings management companies.The study found that: First,the media attention will significantly reduce the stock price crash risk.On the one hand,media can help investors to grasp the latest information of the company and adjust the decision in time.One the other hand,the management has to consider the cost of concealing information because of the more and more effective media.Second,when the company takes a positive earnings management,the media attention can also significantly reduce the stock price crash risk.Based on their own interests,the management will use positive earnings management to hide the negative news.The media can exposure the bad news when they follow and report the listed company.Third,in the case of low earnings management quality,the media attention can also significantly reduce the stock price crash risk.When the quality of earnings management is low,the company’s manipulation behavior will be more obvious.There will be more information that can be mined and eventually mitigating the risk of stock price crash.The conclusion of this paper not only enriches the literature on media and stock price crash risk,but also has profound guiding significance for the innovation of media,the improvement of earnings management quality and the stability of the capital market.