Research On Media Reports,Internal Control And Corporate Investment Efficiency

In an idealized capital market,enterprises often choose to invest in projects with marginal revenue equal to marginal cost.However,in reality,due to information asymmetry and principal-agent problems,enterprises will over-invest and under-invest.Therefore,the problem of inefficient investment generally exists in Chinese enterprises.The factors that affect the efficiency of enterprise investment and how to improve the efficiency of enterprise investment are the urgent problems to be solved.Media play an important role in market information optimization and corporate governance.However,there is little literature on the relationship between media coverage and corporate investment efficiency.Therefore,from the perspective of media reports,this paper makes an in-depth study of the impact of media reports on the investment efficiency of enterprises,so as to provide reference for listed enterprises in China to improve their investment efficiency.Based on the sample data of A-share listed companies from 2007 to 2020,this paper constructs a multiple regression model,carries out empirical test and analysis,analyzes the impact of media reports on corporate investment efficiency,and takes internal control as an intermediate variable,explores whether media reports can affect corporate investment efficiency by influencing internal control.This paper draws the following conclusions:First,the increase in the number of media reports can effectively solve the problem of information asymmetry and improve the efficiency of enterprise investment;At the same time,the increase in media coverage can improve the corporate governance environment by reducing agency problems,thus improving the investment efficiency of enterprises.Secondly,the increase in the number of media reports will arouse the attention and involvement of the administrative agencies.Under the external pressure,the enterprises will take the initiative to correct the internal control defects,thus improving the quality of internal control.Finally,as an external governance mechanism,media reports often improve the investment efficiency of enterprises by influencing the internal governance mechanism,i.e.internal control.At the same time,this paper finds that the impact of media reports on the investment efficiency of enterprises is different when the nature of media reports,the nature of enterprise property rights and the degree of equity checks and balances are different.