Media Coverage、Audit Opinion And Top Management Turnover

Enterprise is a indispensable force to promote the development of the market,Top management personnel as the lifeline for enterprise`s survival and development,responsible for the planning and implementation of the important issues of the enterprises,because of the information asymmetry,Top management may make decisions for their own interests but not conducive to the long-term development of enterprises,Changing incompetent top management in time that is conducive to enterprise prosperous.Replacing top management is one of the most important decisions of enterprises.It will have a great impact on many aspects like investment,operation and so on.Therefore,top management turnover has gradually become a hot topic.The scholars from the perspective of the internal governance discuss the board characteristics and ownership structure`s effect on top management turnover,unfortunately,Opportunism scandals on top management still emerge in an endless stream,in recent years,domestic and foreign capital market emerged the case of corporate scandals,It`s all exposed by media coverage,these cases make people`s investigate turn to external supervision,Discussing whether the external supervision mechanism can effectively restrain the self-interest of top managements and influence the change of top managements.Accordingly,this article based on reputation theory,principal-agent theory,signaling theory,by combining the theoretical analysis and empirical research,through the collection of 2011-2016 A shares listed company data,and taking descriptive statistical analysis and correlation analysis on this date,taking logit regression test for the hypothesis,discussed the influence of media coverage and the audit opinion in two different ways of external supervision on enterprise top managements change.The empirical results show that:(1)negative media coverage has significant influence on executive changes,The number of media negative newspapers increased and the possibility of senior executive change increased;(2)the standard unqualified audit opinion is negatively related to senior executive change,showing that the standard unqualified audit opinion can alleviate the senior executive change;(3)Negative media coverage and the standard unqualified audit opinion will have synergistic effects on senior executive change,when the negative media report on the company,CPA issue the standard unqualified auditopinion has helped to ease the impact of media on the enterprise,reduce the possibility of enterprise senior executives change.Besides,this paper classifies listed companies,and analyzes the effect of media reports and audit opinions on top management turnover in different ownership enterprises.Compared with non state-owned listed companies,media reports and audit opinions influence state-owned enterprise executives change significantly,mainly reflected in:(1)increase the number of negative media coverage,the state-owned enterprise executives to change the probability increases;(2)issued unqualified audit opinion,enhances the possibility of state-owned enterprise executives change;(3)the standard unqualified audit opinion can alleviate the influence of negative media coverage of the state-owned enterprise executives,reducing the possibility of state-owned enterprise executives change.Finally,from theoretical analysis and empirical analysis,this paper gets the conclusion and put forward some suggestions.The main contributions of this paper :(1)the selection of the subject has a certain novelty.Previous studies focused on the impact of internal factors such as corporate performance and governance structure on top management turnover.Media coverage as a way of external supervision has not attracted much attention.Top management turnover is an important means of corporate governance.From the perspective of media coverage,this paper studies the influence of media reports on top management turnover,enriched the research of corporate governance;(2)analyzes its impact on top management turnover from the perspective of audit opinion.In the study of external supervision affects executives change,all the literature only study the effect of a kind of external supervision of executive changes,but with the capital market gradually active,capital activities have become increasingly complex,study two kinds of external supervision is necessary,so,this paper choose two typical external supervision methods of media coverage and audit oppion,discussing the impact of their interaction on executive change,enrich the research on the influencing factors of executive changes.