Research On The Influence Of Media-linked Directors On Corporate Equity Financing

In recent years,with the development of the Internet and the rise of the new media industry,the communication and development of news media play a vital role in our lifestyle,market players and even the development of the whole economy.As the fourth right independent of legislation,administration and judiciary,news media can use their professional and advantages in information collection,integration and communication to spread information about enterprises quickly and effectively,improve the information transparency of enterprises from the outside and change their social reputation,so as to have an impact on the external financing of enterprises.According to the resource dependence theory and the high-ladder team theory,the background characteristics of corporate directors will have an impact on the operation and financing activities of enterprises.Directors with part-time background have richer relationship networks and human resources,which can provide more support and help for the development of enterprises.Therefore,this paper hopes to combine the background characteristics of directors with the equity financing of enterprises,explore whether the existence of directors with media background will promote the equity financing of enterprises,and further study the influence mechanism between the two,which is of great significance to the theoretical research in the field of corporate finance and the future development of the domestic stock market.In this paper,literature research method and empirical test method are adopted to carry out in-depth research on the background of corporate directors’ concurrent positions in media companies and corporate equity financing.First of all,this paper summarized and sorted out relevant theories and literature on the background of director concurrent position,media reports and equity financing,sorted out the thesis theme and research logic,and put forward the research hypothesis of this paper.Secondly,the regression model of empirical test is constructed by referring to previous literatures,and variables are defined as well as data collection and cleaning.Then,benchmark regression and mechanism test were carried out to verify the research hypothesis,confirm the correlation between media-linked directors and corporate equity financing,analyze the two action mechanisms of information disclosure and social reputation,and conduct robustness test and endogeneity test to prove the reliability of regression results.Through the above series of theoretical analysis and empirical research,this paper draws the following three conclusions:(1)Sharing board members between listed companies and media companies is conducive to promoting equity financing;(2)Listed companies share board members with media companies,which can promote corporate equity financing by increasing the company’s media attention;(3)The sharing of board members between listed companies and media companies can promote corporate equity financing by enhancing the positive tendency of corporate media reports.Based on the above three conclusions,this paper finally puts forward the following suggestions:(1)The government should continue to promote the industrialization reform of the media industry,guide and regulate the media team correctly,further develop and improve the news media market in China,promote the media report information dissemination and resource allocation functions effectively.(2)Enterprises should attach importance to its external information environment,realize the positive role of information disclosure for investors to make investment decisions,so as to actively make information disclosure,in order to improve the company’s information transparency,help the enterprise from its own ease financing constraints,help the healthy development of the financial market in our country.