Research On The Relationship Between Network Media Attention,Management Incentive And Internal Control Quality

With the development of Internet,network media is also growing.Network media brings more market reaction to the enterprise than the media reports because of the characteristics of information spread fast and wide coverage.In recent years,network media constantly expose the listed company's illegal behavior to impel the listed companies actively improving its illegal behavior.So it can be seen that the network media has a certain role in the supervision on the behavior of listed companies.Internal control activities are carried out by the enterprise managers,all the staff can participate in it.It is designed to make the business activities more legitimate.As the core staff of the enterprise,the behavior and consciousness of managers play a key role in the effective implementation of internal control activities.The network media has an effect on the quality of internal control through market pressure mechanism,reputation mechanism and administrative intervention mechanism.The management incentive has the incentive function to the enterprise managers.It can change the behavior of the manager,frestrains manager's selfish motive,and urges managers to be more active in the internal control construction.This article studies that the network media attention will have an impact on the quality of internal control from the perspective of network media attention.On the basis of this,the paper further discusses how the combination of network media attention and management incentives will affect the quality of internal control.First of all,the article describes the research background,significance,main content and innovation.On the basis of it,the paper defines three concepts of network media attention,the management incentive and internal control quality by reviewing and summarying the documents,which laid the foundation of deeply exploring the relationship between the media attention and internal control quality,the management incentive and the quality of internal control.Secondly,the paper introduces theoretical basis of this research.It thinks that this research is based on the five theories of asymmetric information theory,agency theory,reputation theory,signaling theory and incentive theory.In the main part of this paper,it analyzes the current situation of China's internal control and put forword the hypothesis of the relationship between the network media attention and listed company internal control quality,aiming at the existing problems.It also put forward that managementincentives will increase the network media on the quality of internal control attention,so as to enhance its influence on the quality of internal control of listed companies.As a moderator variable,this paper studies the mechanism of the influence of network media on the quality of internal control.Then,the hypothesis is verified by empirical analysis.The conclusion of this paper is that the network media attention can improve the quality of internal control.that is,the more the media reports about the listed companies,the better quality of internal control will they have.At the same time,the conclusion of this paper also thinks that the incentive compensation and equity incentive in the management incentive can strengthen the effect of the network media on the quality of internal control.For the different nature of the enterprise,this paper also found that the network media attention can improve the quality of the internal control of the non-state-owned listed companies,but it is difficult to improve the quality of the internal control of state-owned listed companies.