Analysis Of Impact Of Media Negative Reports On Executive Compensation

With the establishment of China’s socialist market economic system and constantly improve, our country enterprise whether the nature of the business or the overall macroeconomic environment has undergone drastic changes, and these will directly affect China’s enterprises in the future development and survival condition. Especially in the new century, in the current rapid development of globalization, enterprises are facing competition not only between single the competitiveness of domestic enterprises, but also to be in the face of counter balance from the excellent foreign companies. But as the industry outstanding enterprise of listing Corporation, which itself has been paid more attention to in the market competition mechanism, its business performance and profitability is directly related to the interests of shareholders, thus for the development of enterprises especially put forward new requirements and challenges of financial management.The emergence of the Internet and the intervention of modern new media, which makes people for executive pay attention to rising enthusiasm. Especially for the senior management personnel of state-owned enterprises has been exposed the sky high salary is quite veiled criticism, think they own the sky high salary and its actual management capability, for enterprises to create value is not in conformity with the. But the existing supervision and management level, but can not effectively to existing senior management personnel salary constraints themselves.Linking theory with practice is adopted in this paper, on the analysis of domestic and foreign related theory basis and paper, combined with the characteristics of the current executive pay, by way of positive analysis to explore the negative reports current media governance role and constraint on executive compensation. In this paper, data span for the full year of 2011 to 2013 of 2357 listed companies of state-owned enterprise data, using data in 2010 to 2012, examined the influence of negative media coverage of the compensation, and the media attention for the treatment of this effect, we get the following conclusions:(1) the negative media coverage had a negative impact on executive compensation; (2) the negative media coverage impact on executive compensation of state-owned listing Corporation than non executive compensation effect of large state-owned listing Corporation. Visible media reports that executives of state-owned enterprises with high salary will be governance behavior. Combined with the results of empirical data, put forward the rational with the help of the existing media reports role for listing Corporation executive compensation governance effectiveness, so as to give full play to the role of media supervision, effective restriction on the existing listing Corporation executive compensation.