Can Web Media Reports Improve The Quality Of Corporate Internal Control?

With the prevalence of the Internet and Information digitalization,the theory of media surveillance becomes increasingly apparent.Against this background,domestic and foreign scholars have begun to study the impact of media reports on companies.However,the current literature needs to be improved in terms of media data acquisition,media classification,and the functions of emerging media.Based on this,this article studies the impact of online media reports on the quality of internal control of enterprises.In the analysis,media reports are divided into three emotional tendencies: negative,neutral and positive.The effects of each type of online media reports on the quality of internal control of enterprises are discussed and then analyze the moderating effect of bank debt governance.Using sample data from listed companies,the empirical research in this paper finds:(1)Online media reports related to financial information can enhance the company's internal control,and the relationship between online media reports related to non-financial information and the quality of the company's internal control is not significant;(2)Negative reports from online media will enhance internal control of listed companies,while positive and neutral online reports will not enhance internal control of listed companies;(3)The governance effect of bank's creditor's rights has a positive regulating effect on the quality of online media reports and the internal control of enterprises.For companies with stronger banker's creditor governance effects,their negative media reports will be more concerned by creditors.Negative media reports will affect the quality of corporate internal control.The innovations of this article are mainly reflected in:First,the selected subject matter is relatively novel.The news reports of listed companies on the Internet have attracted more and more attention from the general public.The impact of online media reports on the quality of internal control of enterprises is a subject worthy of further study.Third,this paper explores the regulatory effects of the governance effect of bank's creditor's rights on negative media reports and the improvement of corporate internal control,concluding that the regulatory effects of the governance effect of bank's creditor's rights has a positive regulating effect on media reports and the quality of corporate internal control,broadening the scope and depth of related fields.