A Study On The Effect Of Media Concern On The Effectiveness Of Internal Control And The Stock Price Of Companies

Since 2008,China has promulgated the "Basic Standards for Internal Control of Enterprises",which indicates that the disclosure of internal control information of listed companies in China has gradually transitioned from voluntary to mandatory.Many domestic scholars have disclosed the internal control information of listed companies in China.Issues such as the role of internal control effectiveness in the capital market are also of increasing concern.With the development of science and technology and the change of lifestyle,the external supervision effect of the media has gradually exerted its unique advantages.Under the current environment of the company's internal control system is not perfect,whether the media attention will have a certain impact on the effectiveness of the company's internal control,sound Whether the effective internal control of the company will affect the fluctuation of the company's stock price is particularly important,which is also the key issue of this paper.In the choice of research methods,this paper chooses case analysis method and event research method,adopts the form of case comparison,selects Boss Appliances and Sunrise East in the two household appliance industries with obvious differences in media attention,trying to study and cause two listings.The reasons for the company's development differences.First of all,this paper sorts out related literatures at home and abroad,and then analyzes the media attention,the effectiveness of internal control and the mechanism of the company's stock price.Second,using the relevant data of the two listed companies,the research media concerned the impact on the effectiveness of the company's internal control and the media's impact on the disclosure of internal control information on the company's stock price.Finally,through case study analysis,it is found that media attention can improve the effectiveness of internal control of the company.The information disclosure of the company's internal control evaluation report will have an impact on the company's stock price.The internal control defect information will have a negative impact on the company's stock price.This paper empirically verifies the correlation between Boss Appliances and Sunrise East's media attention index and internal control index.On this basis,the event research method verifies that the media pays attention to the negative impact of the company's negative internal control information.To a certain extent,it provides research support for corporate media governance.In addition,through media attention to the effectiveness of internal control and the positive impact of the company's stock price,it provides some useful references for executives to give full play to the positive role of the media and the improvement of thecompany's internal control system.The innovation of this study in: China is still little effectiveness of internal control literature and the relationship between the two company's share price,research and media attention on the company's share price affect the effectiveness of internal control is even more rare.In addition,we introduce the event study to analyze the positive and negative price changes in the company's internal control information brought media attention,and the owner of Boss Appliances and Sunrise East stock price differences in response were compared,based on the conclusions of the correct use of the media external oversight mechanisms,relevant enterprises to strengthen the implementation of the internal control system of government to better regulate and supervision put forward some practical recommendations.