The Influence Mechanism And Effect Analysis Of Media Supervision On Listed Company Governance

After 30 years of development along the road of marketization,legalization and internationalization,China’s capital market has achieved historic and groundbreaking achievements.However,the development of China’s capital market has also revealed some problems,such as small total volume,lack of competitiveness of exchanges and imperfect issuance and delisting mechanisms,especially the overall quality and governance level of listed companies still need to be improved.The media has achieved leapfrog development in China through continuous iterations over the past 40 years of reform and opening up,and plays an important role in exposing illegal and irregular behavior of listed companies as an important external corporate governance mechanism.On July 21,2018,We media published a paper questioning the fraud of immortal biological vaccine,which aroused wide attention.After investigation and follow-up,the State Food and Drug Administration,Jilin Provincial Food and Drug Administration and China Securities Regulatory Commission successively imposed administrative penalties on Changsheng Biology.Through the research,this paper finds that the process of corporate governance of media supervision is divided into three stages:information diffusion,stakeholder action and manager action.In this process,corporate governance plays its role through three mechanisms.The reputation mechanism acts on the corporate reputation and the manager’s personal reputation.The administrative supervision mechanism mainly plays a role through the administrative coercive force of the regulatory and law enforcement departments.The market pressure mechanism is manifested in that investors "vote with their feet" after paying attention to the negative information of the company,resulting in the decline of the company’s stock price.Under the pressure conduction of the three mechanisms,Changsheng has to take measures to improve corporate governance.Under the supervision of the media,the corporate governance effect is remarkable,the information asymmetry is alleviated,the internal governance structure is improved,and the laws and regulations mechanism of external governance is also more perfect.Of course,the media supervision also made Changsheng biological company’s operation stalled,the value of the enterprise was seriously reduced,and finally delisted.Changsheng Biological is the first company forced to be delisted due to serious damage to national interests and social public interests after the exchange issued new regulations on major illegal delisting.Changsheng Biological case is also the first typical case of "we media" promoting public policy reform and playing the role of corporate governance in China.The case study can supplement the research in related fields,warn other enterprises,promote the perfection of laws and regulations system,and encourage media supervision to better play the role of corporate governance.Based on this,this paper suggests that the media themselves,administrative supervision departments,listed companies and investors should take multiple measures to ensure that media supervision can better play the role of corporate governance and protect the interests of investors and the public.