An Empirical Study On The Relevance Of Media Monitoring、Corporate Governance And Perks From Listed Companies In China

In the incomplete contract background, perks has draw widespread media attention and caused increasingly popular phenomenon. As an implicit incentive company operation and management control, perks has a part of certain rationality and necessity, however excessive perks wouldincrease the agency cost which is not necessary, and resulting in the loss of the interests of the company owners. However, due to the specific of perks which coversboth trivial and complex, while the current phase of accounting standards has not given clear confine on perks, making the perks has a certain ambiguity in the definition. This specific of perks makes managenment could obtain tacit benefits by providing greater operation spaceon the accounting treatment of perks. This umbrella makesmanagement who have the right of management company convenient to use his authority to carry out self motivation. From the perspective of agency costs, because its more understand the whole situation inside the company and can be controlled, there is motivation and the ability to obtain benefits for managenment at the edges. On the whole, the disclosure satuts for perks of China’s listing Corporation is not optimistic yet, there are about more than half of the listing Corporation choose not to disclose the relevant perks per year, while for the companys which disclosured the informantion, the quality is not ideal. And there was a great difference between companies on the amount of perks spent every year. With this specific circumstances,the stakeholders have the right and the need to know perks of the corporations. Excessive perks increased unnecessary agency costs, which influence stakeholders’profitability and weaken the competitiveness of the company. In addition, perks also have relation on the fairness of social distribution.In summary, the supervision for perks is one problem takes more and more attention from government, shareholders, the public and other interest-related part. Current study on perks, which most existing in the influence caused by the government and system. However in China which go through the transition, the result is not ideal. This paper attempts to find the connection of media supervision and corporate governance to perks, with the new point of view to research the investigation and supervision on management perks, other than traditional outside angle. Firstly, this paper summarized the previous studies about perks, corporation government and media monitoring, then according to the relevant theory--agent theory in corporate governance and media supervision, this paper deduces the relationship between perks, network media supervision and corporate governance, and put forward the hypothesis of this paper. Secondly, with the data from all A shares in2010-2013and through delete the imperfect samples, makes an empirical test on the hypothesis in this paper. After descriptive statistics for selected samples, the relationship between firstly by assuming a key test of media supervision and service consumption two, and then on the assumption that the second test of the media supervision by improving corporate governance level and to regulate the operation of the mechanism of management of perks behavior.This paper is composed by six parts:the first part is the introduction, mainly introduced the article selected topic significance and research background, research contents and research methods; the second part is the literature review, this article from home and abroad onperksperks, media supervision and corporate governance, with summarizing those researches, to the relation between perquisite consumption and media supervision, the corporate governance began reveal themself; the third part through the analysis cleared up two related theoretical assumptions in this paper; the fourth part is the research design of this paper, including the design of the sample selection and data sources, variable and model; the fifth part is the empirical testing and analysis, including descriptive statistics of the sample and test the proposed two hypotheses in this paper, proved the main conclusions in this paper; the sixth part is put forward suggestions according to the empirical conclusions above.Through the research of this paper, the supervision effect of media standardize the significant effect on the listing Corporations’perks behaviors. At the same time, this paper also confirmed that negative media reports enable listing Corporation to improve the internal control mechanisms, thus activating the governance effects of perks behavior of the corporation through empirical study.