An Empirical Study On The Media Governance Effect On Overseas M&A Of Chinese Listed Company

Internet has developed rapidly over the past decades,which is obvious to the all.At the same time,media governance is growing the new power to focus on the corporate behaviors,and whose scope has covered the range that the law can't deal with.In the economic and management field,media governance has been the popular research subject,and it also has been the important role for the investment and financial market due to the Internet fast development.As the improving country,the open capital market makes the overseas M&A increase fast.In order to occupy the market shares,our country competes fiercely with the other ones,which attracts a lot of media organizations especially the emerging media,to report these M&A transactions,which can catch the movement in the financial market and announce the news to the public.Then whether these reports have influenced the development of our country's M&A and whether the lasting reports will supervise the company integration after merging are the important factors,after all,the successful standards of the M&A is the last effect of the merging integration and the if media coverage have the positive impact in the process rather than the moment of transaction.The article takes the hand-selected successful 101 listed companies as samples,in the background of an outbreak of the financial from 2008 to 2015 when our country's capital market shows the new features,using the event study to research the established mathematical models with SPSS21.0 and introducing media the key variables to make a deep research in the frontiers on how the media reports have a certain impact on the M&A transactions.First in the pricing phrase before the merging transaction,whether the mass media coverage will inhabit the high premium during the overseas M&A.Second,during the process of M&A transaction,whether the media reports will influence the enterprise financial risk.At last,after the deals finished,how the media reports have impacted in the short-term market reactions an the long-term enterprise performance are the significant objects in this article.The empirical results shows that :(1)media coverage can suppress t the high premium in the pricing phrase;(2)in the year of the overseas transaction,media coverage can control the enterprise financial risk to a certain degree;(3)media coverage can take the obvious accumulated extra returns,the higher attention the media gives,the wealth effect shows more obviously;(4)as to the overseas M&A long-term performance,media reports also have the positive interaction on it.At the end of the article,we make a series of conclusions on the overseas M&A process,providing the suggestions that how the media organizations manage their behaviors and how the investors and shareholders face the media coverage,putting forward the prospect of the current states in media governance.