Disclosure Of Key Audit Matters Media Attention And Risk Of Share Price Collapse

China’s capital market has developed since the 1990 s,and its volume has been increasing,but there are also many twists and turns in this rapid development.The sharp decline of share price will cause huge losses to investors,reduce investor confidence,affect the stable development of capital market and interfere with the smooth operation of economy.The impact of the epidemic has led to the retrogression of the world economy,the increasing complexity of the international political situation and the instability of the global financial market.Therefore,it is more important to take effective measures to ensure the smooth and effective operation of the capital market.The company’s share price is the embodiment of the company’s value.The disclosure of negative news will damage the company’s value and affect the reputation and income of the company’s management.Therefore,the management will hide the negative news as much as possible.But after all,paper can’t cover the fire.After the bad news accumulates to a certain threshold,it will inevitably be exposed to the market,causing stock holders’ emotional fluctuations,selling stocks and then causing a crash.It can be seen that the unequal amount of effective information in the hands of all participants in the capital market interferes with the normal trading of the stock market.The original intention of the new audit standards to force the addition of key audit matters is to provide investors with more effective information to help them make reasonable decisions.At the same time,with the progress of science and technology,the power of another information transmission mechanism is becoming more and more powerful-media.The media platform goes deep into every corner of society.The news media carries the internal information related to the company.In addition,the media people are sensitive to the information,which can accurately judge the major problems existing in the company’s daily business process or financial statements,and report them timely and quickly to reduce the company’s concealment of negative news.Based on this,this paper considers whether the news media reports can form a joint force with the new key audit matters in the audit report to provide investors with more effective information,so as to better maintain the stability of the stock price?At present,the research on the influencing factors of stock price collapse risk is relatively rich,but most of them focus on the internal perspective of the company,and there is still a lack of starting from the external mechanism of the company.Therefore,based on the existing literature,this paper first discusses the possible significance and role of mandatory disclosure of key audit matters under the requirements of the new audit standards and joint media attention in reducing the occurrence of stock price collapse.Secondly,based on the relevant literature and theory,this paper selects all A-share companies from 2014 to 2020 as a sample,using stata15 0 for data verification.Analyze the changes of the huge fluctuation of stock price before and after the addition of key audit items in the audit report,and analyze the regulatory effect of the external media environment on this relationship;Then construct the econometric model to test the role of regulation,and analyze the results of multiple regression.After further analyzing the regulatory effect of media attention on emotional differences,we draw the following conclusions: the disclosure of key audit matters can significantly reduce the violent negative fluctuation of stock price;The media’s attention to listed companies has a "spillover effect"--under the high media attention,the negative correlation between the key audit matters disclosed by certified public accountants and the huge fluctuation of stock price is more obvious;The regulatory effect of media attention is not obvious.The relationship between the disclosure of key audit matters regulated by media and the possible occurrence of stock price collapse mainly depends on the improvement of attention rather than emotional guidance.According to the research conclusions,this paper draws the following enlightenment: first,we should continue to improve the content quality of key audit matters.For certified public accountants,the new form of audit report involves more complicated audit procedures,and improving their ability is helpful for certified public accountants to properly deal with new changes;At the firm level,firms,especially small-scale firms,should continue to strengthen the vocational education of certified public accountants,deepen the certified public accountants’ understanding of the new standards,and carry out internal exchange and learning of the new standards.Secondly,we should pay attention to the construction of media.Government departments should improve laws and regulations,establish supervision mechanism,create a benign environment of fair competition,promote the media to maintain objective neutrality and ensure the quality of information transmitted by the media;When transmitting information,the media should first be objective and fair,refuse to collude with listed companies,and ensure the authenticity and reliability of the news;With higher professional ability,the media can more easily explore the characteristic information of the company.Especially for enterprises with high risk,the media can pay more attention appropriately,and provide investors with valuable information timely and accurately,so as to help investors make decisions.The last part puts forward targeted suggestions on how to promote the joint force between key audit matters and media attention in information transmission,give full play to the media reputation mechanism and speed up the construction of CPA reputation system;At the same time,certified public accountants should be good at using the media platform to receive more information.All these have important theoretical and practical significance to reduce the extreme decline of stock price at the individual stock level.