The Research Into The Impact Of Media Monitoring、 Administrative Intervention On Perks

In recent years, with the upgrading of China’s anti-corruption efforts, executives of listed companies, especially state-owned enterprises, were included in the main object of attention, Perks which a is an important source of management encroaching corporate interests becoming increasingly widespread public attention. As the soul of the company, management is very important for the company’s performance. In order to maintain the normal development of enterprises, travel expense, hospitality and other perks are indispensable, but managers often in order to pursue their own enjoyment consume more perks. The executives of China’s listed company are frequently traced to indulge in wasteful behavior. As crucial management for economic development, their behavior seriously damage the social atmosphere, disrupted the market order, reduce market allocation efficiency. At the same time, the behavior greatly affect company performance, occupy the interests of business and shareholders. The concealment and ambiguity of those expense increases the difficulty to confirm its legitimacy, and it provides a great opportunity for managers to pursue their own interests. Thus, improving the supervision’s level for perks is very significant. However, the company’s supervision is limited, so expanding the scope of supervision can better regulate this behavior. The article does not make attention on the internal governance and investment policy, but to explore the external governance mechanism-media monitoring. The main purpose of this paper as follows:first, exploring the media coverage’supervisory role for perks, otherwise, as an additional means of internal oversight, whether media monitoring can limit the level of perks, when the internal governance mechanisms are inadequate. Second, seeking the governance approach of media monitoring on perks. The existing literature on the governance of media coverage is failed to reach a unified point of view. This paper empirical study whether administrative intervention is the way which media play its role. Third, this paper explores whether the extent of administrative bodies involved and punitive measures play a governance role on media monitoring’s governance.This paper describes the theoretical basis of perks-the three levels of agency theory, corporate governance theory, media governance theory and the theory of government regulation, on the basis of those theory, analyzing the relationship between media monitoring and perks, and pointing the way of media monitoring on perks is administrative intervention, and then put forward the hypothesis of this paper and collect data to empirically test the hypothesis. The source of this article’s data is the A-share of listed companies in 2010-2014, and screening the samples by the financial and non-financial indicators. On the one hand, the selected data is made statistical correlation analysis, on the other hand, verify that the supervisory role of the media monitoring for perks and transmission mechanism between them.On basis of research topic, this paper is divided into six parts:The first part is the introduction. This part is the basis of this paper, and it outlines to research background and significance, content and methods and the proposed innovation of this overview; the second part is literature review, this part describes the motivation of perks’ presence, the factors for perks, the inhibitory pathways of media monitoring for perks and the transmission mechanism. The third part is the theoretical analysis and assumptions’ propose. This part mainly defines the theoretical implications of perks, media monitoring, and administrative bodies involved, and providing bedding for empirical research. The fourth is study design, in which part choose the sample company, determine the source of data, and design variable and model. The fifth part is empirical research, in which the sample is made descriptive statistics and correlation analysis, verify the hypothesis, and put forward the final conclusion. The last part is about recommendation, on basis of the final conclusion, put forward effective recommendation and policy, and explain the contribution of this paper as well as the limitation.The paper discovers media monitoring can obviously inhibit perks, but it does not have the persistence. Otherwise, administrative invention is the transmission mechanism between them, and the consequence is more unfavorable the governance of media monitoring is more effective.