Empirical Study On The Impact Of Media Coverage On Perks From Listed Companies

In recent years, the media has constantly exposed scandals that executives of listed companies are suspected of perks, which makes the issue of perks highly focused. China is currently at the stage of economic transformation and the markets and laws are imperfect. As the production of incompleteness in monetary pay contracts, perks exists widely in listed companies. Although its existence is reasonable to some extent, in fact, perks in listed companies is always excessive, which leads to heavy profit losses of the company. Thus, the research on perks makes great sense. Present researches about it are mainly from the point of internal administrative mechanism of corporations rather than external administrative mechanism of corporations. As an important part of external administrative mechanism of corporations, media coverage is increasingly important for corporate governance. And questions emerges:Does media coverage have an impact on perks in listed companies? And how does it impact? What’s the difference between the impact on state-owned enterprises and that on non-state enterprises? Does the impact vary with the degree of marketization?Specifically, this paper has come into the following conclusions:(1) The negative media coverage and perks in previous year was significantly negatively correlated, which suggests that the negative media coverage service management can effectively inhibit consumption, while the description of media monitoring has been lagged behind. (2) State-owned enterprises can significantly inhibit media coverage service consumption, while for non-state-owned enterprises, media coverage on-the-job consumption inhibition was not significant. (3) Located in areas with high marketization, media coverage can significantly inhibit perks of management layer in listed companies; but located in areas with a low degree of marketization, the relationship between media coverage and perks is not significant.Meanwhile, this passage has put forward some suggestions for non-pecuniary consumption management combining with research theories. The view point is to improve perks of management disclosure system and increase information transparency; accelerate the process of marketalization; open media market; improve company management; make substantial shareholders play a supervisory role in order to control the unreasonable non-pecuniary consumption in listed companies efficiently.