Study On The Relationship Between Exchange Supervision And Media Supervision

Our country’s capital market is huge,involves many companies;however,the good and the bad are mixed.Only relying on the penal supervision of the China Securities Regulatory Commission cannot meet the requirements.Therefore,we need to explore other external supervision methods.On the one hand,since the19 th National Congress of the Communist Party of China was held,"transforming government functions and innovating government regulation" has become a significant trend in China’s capital market reform.Exchanges,as the "organizers" of the capital markets,have direct natural supervision.The advantage is that it can promptly issue inquiry letters to listed companies to ensure the completeness of their information disclosure,thereby enhancing the transparency of the capital market.On the other hand,based on the governance research of listed companies in China,Yinguangxia’s financial fraud incidents,Wuliangye’s illegal transfer of benefits,and Kangdexin’s fictitious transactions were the first intervention of the media that attracted the attention of the company’s stakeholders,and ultimately led to administrative intervention.With the continuous development and improvement of China’s information technology,the media’s external governance role also is growing.In January 2019,many financial media reported that Dongxu Optoelectronics has the problem of "both high deposits and loans".In May 2019,the exchange discussed the current status of monetary funds in its 2018 annual report and whether there is any transfer of benefits from related parties and why to maintain large-scale interest-bearing liabilities and other matters issued inquiries.In November 2019,Dongxu Optoelectronics had a bond default incident.Based on this,this article combines relevant theories on exchange supervision and media supervision at home and abroad,taking Dongxu Optoelectronics as the case study object,and profoundly explores the effectiveness of exchange inquiry letter supervision and its role and limitations within media supervision.In this regard,it analyzed whether the two can complement each other’s advantages and play a synergistic effect when they are in supervision.Through case study and analysis,the market’s response to Dongxu Optoelectronic’s receipt of the letter announcement is significantly negative,which shows that the exchange’s inquiry letter supervision model has information content.Through continual analysis of its supervisory role: the exchange inquiry letter supervision is time-effective;the exchange will announce the contents of the receipt and reply letter of the listed company as soon as possible,which adds more related information to the company’s stakeholders.As the professional institutions with legal supervision,it can correct the exaggerated reporting behavior that may occur in the early stage of media reports and stabilize the market voice;the exchange inquiry letter supervision has insufficient efficiency and deterrence.An in-depth analysis of the role of media supervision found that the media has a certain level of professionalism;it can reduce the cost of collecting information by the public by releasing relevant information promptly and simplifying the complexity of such information in reports.The media can spread information promptly and speed up the spread of information after Dongxu Optoelectronics breached the contract,and deeply investigated the reasons behind,and induced reflections from all walks of life,and indirectly improved the overall governance level of listed companies.However,the media has some limitations in the motivation and behavior of exaggerating reports.Finally,based on their respective roles and limitations,this article further analyzes the relationship between the two and finds that the two have synergistic effects and complement each other’s advantages.The research in this article has certain theoretical and practical significance.Firstly,it demonstrates that the supervision of exchange inquiry letters can trigger market reactions,which is informative and enriches relevant literature.Secondly,it analyzes the supervision of exchange inquiry letters and media supervising their respective roles and exploring the relationship between the two,providing a basis for strengthening the supervision efficiency of information disclosure of listed companies in our country.