The Study Of Media Reports On The Agency Cost Of Listed Companies In China

This paper provides an in-depth study of the paths related to the role of media coverage in the agency costs of state-owned listed companies and the factors that influence the relationship between media coverage and the agency costs of state-owned listed companies based on a new perspective of media coverage,which will not only expand the research on agency costs,but also help companies and regulators to adjust and improve the governance effects of media coverage,help alleviate the agency problems existing between principals and agents,and It will also help improve corporate governance.The joint-stock system is a more common form of corporate organization today.The separation of ownership and operation of a joint-stock company gives rise to the agency problem of inconsistent interests between the principal and the agent.Academics have conducted extensive research on how to solve the agency cost problem arising from the conflict of interests between the two parties,and many scholars have made suggestions in terms of optimizing the corporate governance structure and improving the incentive mechanism for managers.These suggestions have certain positive effects on corporate governance,but due to the special nature of ownership of listed companies in China and the complex capital market environment,the expected governance effect cannot be achieved only through the optimization of internal corporate governance structure,so it becomes a new idea to combine external governance mechanisms to jointly solve the agency cost problem.With the rapid development of the Internet,the role of online public opinion in public management,business economy and even corruption management has become increasingly critical.As an external governance mechanism of corporate governance,media reports play an important role in restraining and supervising the business behavior of companies and reducing agency costs.As an emerging mechanism of external corporate governance,the governance role played by the media has attracted the research interest of many scholars.Against the background of the widespread attention to external governance mechanisms in corporate governance,this paper analyzes the financial fraud of China’s Zhangzidao Group Co.Based on the development of Roe Island,this paper divides the study period into three stages by taking into account the business situation of Roe Island after the media reports on the financial fraud of Roe Island,and analyzes the changes of agency costs of Roe Island in these three stages by using comparative analysis,and then discovers the relevant paths of media reports acting on the agency costs of Roe Island.Based on the relevant theoretical foundations and the changes in the agency costs of Roe Island,it was found that media coverage contributed to different degrees of changes in the agency costs of Roe Island through three paths: the reputation mechanism,the administrative intervention mechanism,and the information dissemination mechanism.This finding suggests that media coverage as an external governance mechanism plays a role in reducing the agency costs of state-owned listed companies.However,from the repeated violations of information disclosure system by Zhangzidao,there are still relevant factors affecting the relationship between media coverage and agency costs of state-owned listed companies.This paper delves into the paths related to the role of media coverage in agency costs of state-owned listed companies based on the new perspective of media coverage and the relevant factors affecting the relationship between media coverage and agency costs of state-owned listed companies,which not only expands the research on agency costs,but also helps companies as well as regulators to adjust and improve the governance effects of media coverage,helps alleviate the agency problems existing between principals and agents,and improve corporate governance.