Information Disclosure And Media Rent-seeking:Empirical Evidence From China's Capital Market

Through the cases "Daily Economic News preventing a number of enterprises from being listed on the market" and "the Twenty-first Century Net big news extortion",this paper introduces two competitive states of media surpervision and media rent-seeking.Under the IPO pre-disclosure system,this paper constructs the analysis framework of media rent-seeking based on the media biased theory.On this basis,this paper reviews the two competitive theories of media governance theory and media biased theory,and defines the concepts of media rent-seeking and paid silence.Under the IPO pre-disclosure system,this paper constructs the analysis framework of media rent-seeking based on the media biased theory.The media can make an impact on the issuing and verifying decisions through negative news reports,so that the media has "invisible veto" to a certain extent.Due to the scarcity and uncertainty of listing,enterprises have the motivation to buy the silence of media to reduce the risk of listing failure.When the pre-disclosure time is further extended,on the one hand,the media can know more about the enterprises,and on the other hand,the enterprises will face more exposure and supervision.That is to say,the equilibrium of supply and demand of "silence" further changes,the cost of paid silence further improves,and the rent-seeking of media is further strengthened.The empirical results show that there is a significant negative correlation between the media public relations fee and the negative news reports from the media.The extension of the IPO pre-disclosure time in 2012 further weakens the inhibition of the media public relations fee on negative news.The above results confirm the existence of media rent-seeking phenomenon under the IPO pre-disclosure system,and also reflect the strengthening role of the longer pre-disclosure time to media rent-seeking.Through the further study of the inter group difference test,it is found that the high-performance reversal group companies do not pay significantly more media public relations fee,and the high-public media fee group companies do not have more significant performance reversal after the listing.It means that the media rent-seeking and paid silence are not only the opportunistic behavior of some companies,but also the "latent rules" that most companies generally encounter in the process of listing.