Abstract: Using language analysis tools to build media attention index and media tone index, this paper studies the impact of media governance on the stock price crash risk and its mechanism under the impact of new media. The empirical results show that the media has a significant inhibitory effect on the stock price crash risk. Specifically, “soft information”, such as traditional paper media attention and media tone, are negatively correlated with the stock price crash risk, and active social media and application of Weibo of listed firms help more to reduce the stock price crash risk; compared to state-owned enterprises, the impact of media governance on the stock price crash risk is more obvious in the private enterprises; good internal corporate governance can improve the media′s ability to curb the stock price crash risk. The above empirical results confirm the relevant logic hypotheses: the media has functions of information transmission, supervision and governance, which can reduce the information asymmetry, and increase the difficulty of insider hiding bad news, illegal costs and reputation losses, so that to reduce the stock price crash risk; the impact of the new media is more obvious on stock price crash risk because of its rapid dissemination of information, wide ranges of influence and smooth communication with the enterprise.

Key words: new media, traditional media, corporate governance, interactive effect, stock price crash risk