A Study On The Influencing Factors Of Decision-Making Of Media Listed Companies

Scientific decision-making of Board of Directors plays an important part in corporate governance of Listed Companies. It determines the company’s direction, strategy and development path. Good decisions lead to economic benefits. However if the decision-making mechanism is unreasonable, which means the decision-making process lacks probation oversight or improper decision cannot be corrected in time, the company might move towards falter.This research comprehensively analyzes the properties and characteristics of Chinese Media Group with knowledge of journalism, management, economics and other disciplines. Treating listed companies of media industry as the main object of the study, the property rights theory, the principal-agent theory, the theory of corporate governance and other methods are used to analyze the influencing factors of decision-making of listed companies from both external and internal perspectives. And by exploring a typical case, the various elements in the analysis are verified. After analyzing the general regulation, the special elements, the experience and the problems exposed in the decision-making process of media listed companies, the research provides recommendations for decision-making process of media listed companies.Influencing factors from the external aspects include propaganda governance, administration governance of press and publication administration departments, state-owned asset management, securities marketing management, legal regulation and moral regulation. Influencing factors of decision-making within the company include the goal and mechanism of decision-making and decision-makers.Particularity of decision-making of media listed company lies in two aspects. First, it is performed as the separation of ownership and control in the external governance. Second, its decision-making aims at duel-objectives; third, the Board’s decision is tightly controlled by the controlling shareholders (actually Party Committee of media organizations).Problems exposed in the decision-making process of media listed companies currently include:the division among functions of party committee propaganda department, press and publication administration departments, state-owned assets management department and the securities market regulatory authorities is unclear, which leads to the low efficiency of decision-making, while the board lacks external supervision in the actual decision-making process; benefits and decisions of minority shareholders are lack of protection; board structure is irrational, lacking of independence, and the Board decision is controlled by the Party committees of shareholder; regulation of Procedure of the Board is incomplete, and thus the implementation of the decision-making mechanism doesn’t comply with the rules; decision-makers lack of professional competence.Therefore, the author puts forward following recommendations: integrating and unifying regulatory authorities and changing management methods, weakening the direct leadership of the controlling shareholders, strengthening the system construction of decision-making mechanism and self-monitoring, and enhancing the professional competence of decision-makers.