How The Media's Concern Suppress "Conspiracy Deficit" In Sino Foreign Joint Ventures

Since the policy of "market for technology" has been put forward,joint ventures have become an important way for foreign capital to enter the Chinese market.According to China's Ministry of Commerce "China foreign investment report 2016",as of 2015,there are 31.68 million Sino foreign joint ventures in China,accounting for 37.88%of the total number of foreign-funded enterprises.In 2015 alone,there were 5989 new Sino foreign joint ventures,an increase of 24.15%over the same period last year.However,it is very difficult for Chinese enterprises to learn technology and advanced management level through joint ventures with foreign counterparts.In addition to the fact that many key technologies still rely on foreign countries,many joint ventures even pay a "blood price",that is,the dilemma of being bought by foreign investors.The scholars have found that,after the foreign parties stand firm in the Chinese market by the joint venture,they can make joint ventures loss by dividing the sales market,transferring profits and controlling the key positions,and finally realizing the sole proprietorship.In this regard,most of the scholars are suggest the government to strengthen market control and enterprise to enhance innovation ability.However,the implementation of "conspiracy loss" by the foreign side is concealed.Countermeasures from a single subject is not enough to respond effectively.We need a signal transmission mechanism to remind Chinese enterprises to take preventive measures in time and effectively.Media attention,as a main body of information dissemination,has been proved by many researches for its role in corporate governance.Therefore,this paper introduces the media to analyze whether it can play a supervisory role in the abnormal loss behavior in Sino foreign joint ventures.As the academic circles argue about the "supervision" and "conspiracy" of the media,this study also finds that the media does not necessarily play a supervisory role in corporate governance,but needs to cooperate with other supervisory bodies in order to exert its influence.In view of this,this paper constructs some groups of supervisory forces of institutional investors,certified public accountants,government and the media,analyzes the inhibitory effect of the those combination force on the abnormal loss in the joint venture,and then puts forward suggestions for the Chinese side to identify the means of "conspiracy loss" in time and to take action to protect its own legitimate interests.The main contribution of the paper is to establish a Logit regression equation,and compare the role of supervision of institutional investors,CPA and regulatory authorities and media reports in the process of preventing "conspiracy losses" in Chinese companies.The empirical results show that,the higher the shareholding ratio of institutional investors,the more effective the media can inhibit the "conspiracy losses" of the foreign parties.Moreover,the greater the strength of combination force of institutional investors,certified public accountants and the government,the greater the media's inhibition of the foreign "conspiracy".Finally,from the four roles of media,institutional investors,CPA and the government,the paper puts forward suggestions on how the internal and external supervision bodies can help Chinese enterprises effectively identify and deal with the "conspiracy losses" of foreign joint ventures.