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Media attention, internal control quality, and legal litigation

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  • Tang, Weiran
  • Tang, Maolin

Abstract

Using data from A-share listed companies in China from 2007 to 2021, this paper explores the relationship between media attention, corporate internal control quality, and legal litigation. The study finds that media attention significantly improves the quality of a company's internal controls. Moreover, high-quality internal controls effectively reduce the risk of legal litigation for companies. Additionally, media attention plays a significant moderating role between internal control quality and the risk of legal litigation. These findings provide important empirical evidence for corporate governance and regulatory policies.

Suggested Citation

  • Tang, Weiran & Tang, Maolin, 2025. "Media attention, internal control quality, and legal litigation," Finance Research Letters, Elsevier, vol. 73(C).
    • Handle: RePEc:eee:finlet:v:73:y:2025:i:c:s1544612324016763
    DOI: 10.1016/j.frl.2024.106647
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    References listed on IDEAS

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    More about this item

    Keywords

    Media attention; Internal control; Legal litigation; Online media; Newspaper media;
    All these keywords.

    JEL classification:

    • M48 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Government Policy and Regulation
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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