The Research Of The Influence Of False We-media Reports On Company Value

As an important information intermediary and supervision force of public opinion,media has been playing an important role in the capital market,which can effectively alleviate the information asymmetry in the market and improve both the level of corporate governance and the efficiency of market resource allocation.With the development of information technology and network,a large number of We-media platforms emerged at the proper moment.We-media has become an important form for media to participate in social and economic governance.In the era of "We-media",everyone has a voice and could be the news producer.Information can be easily produced and disseminated at low cost and with high efficiency.Moreover,We-media reports can induce aggregation effect as well as interactive effect in a short time,the power of public opinion has been further strengthened.However,the vigorous development of We-media is also accompanied by some problems.In recent years,false reports from We-media have emerged one after another in the economic field,which not only caused great harm to the target company,but also impact the healthy and stable development of the whole capital market,seriously affected the normal order of the market and damage the economic interests of companies and investors.Nevertheless,previous studies lacked necessary and due attention to this.Based on the four false reports related to Yili Co.,Ltd.,published by We-media from 2010 to 2018,this paper adopts the method of case study to explore the economic consequences of the false We-media reports,analyzes the motivation of the We-media to publish false reports on listed companies,whether and how the false reports affect the company value,and what is the effect of different measures taken by the company against false We-media reports.The results show that: by processing product harm crisis events and management crisis events,false We-media reports take advantage of the information asymmetry between stakeholders and the company,then damage the company’s reputation through group polarization effect as well as broken window effect,which will affect the sentiment and behavior decision-making of investors,make investors get into a panic and lead to the stock market turmoil.Therefore,they have an immediate and short-term negative impact on the value of the target company.In addition,the different response measures taken by the target company to the relevant false reports will also have a certain impact on the company value,which provides a reference for the governance of the false We-media reports.