A Study Of Governance Of On-the-job Consumption Based On Media Supervision From The Perspective Of Internal Controlling

With the increase of the degree of enterprise marketization, enterprises separate management from ownership, which leads to the emergence of professional managers. Professional managers are employed as the enterprise managers, that is, the enterprise management. Professional managers always keep the operation and management of the enterprises in a controllable state, but they also increase the agency costs during the production process. Besides, the powers within them force the enterprises to face the risk of corruption. The corruption owing to the position-related consumption of management has gradually become a hot topic in the process of corporate governance. Excessive on-the-job consumption of management is a reflection of the high agency costs. Opportunistic enterprise managers use their powers related to their positions to increase their implicit income. Because of the hidden nature of on-the-job consumption, excessive position-related consumption has become a breeding ground for corruption. Chen Haitong, the former chairman of Sinopec, was put into prison for accepting a bribe of nearly 200 million yuan while the average on-the-job consumption went up to 40 thousand yuan a day during his tenure. However, the most painful point is that Mr Chen would have randomly abused state-owned assets day after day if he had not been dismissed for bribery. Therefore, it is no wonder that the splurge belief that money for free is in vain no matter what it is used to and fools do not use it is widely accepted by top managers of SOES (state-owned enterprises). According to a survey conducted by Liu Cheng, a professor from University of Science &Technology Beijing, some presidents of state-owned bank branches have annually still spent up to millions of money on duty expenses.The same case as Chen Haitong remains. The national government departments have detected 7556 cases involving corruption and bribery from January to March in 2015, amounting up to 1.28 billion, which is incredible and thought-provoking.With the deepening of the research on on-the-job consumption, scholars focus on the study from the company’s internal governance to the company’s external governance. In the past, studies of external governance of on-the-job consumption focus mainly on the laws enacted by the government, but the laws regulating on-the-job consumption in our country are not complete, so the problems of excessive on-the-job consumption can’t be solved by simply relying on laws. With the development of information technology, the role of media supervision is becoming more and more apparent. Media report has become an important way of social supervision due to its fast transmission speed and wide transmission scope. From the perspective of media supervision, this paper studies the problems of excessive on-the-job consumption of senior managers and tests the influence of external governance of media through theoretical analyses and empirical tests. It provides a new research method for researchers to study on-the-job consumption and a new way to control on-the-job consumption in the process of production.In order to study the above problems, this paper first defines on-the-job consumption, which can be divided into two parts, reasonable on-the-job consumption and excessive on-the-job consumption. This paper focuses on the excessive on-the-job consumption. The principal-agent theory, the theory of media management and corporate governance theory are the main theories supporting excessive on-the-job consumption. This paper expounds the relationship between media supervision and excessive on-the-job consumption and the relationship between media supervision having the intermediate mechanism of internal control and excessive on-the-job consumption through empirical analyses, and puts forward the relevant hypotheses, which will eventually demonstrate the effects of media supervision on on-the-job consumption. This paper chooses data from Shanghai stock market, Shenzhen stock market and several GEM listed companies from 2010 to 2014 as a sample, launching descriptive statistics and regression analysis to the hypotheses of this paper, to verify the hypotheses in this paper.From the perspective of the exploration of on-the-job consumption, this paper is divided into six parts:the first part is the introduction of this paper, focusing on the significance of the topic, the background of the research, research content, research methods and points of innovation; the second part is the literature review, expounding the studies of on-the-job consumption and media supervision from both domestic and foreign aspects; the third part analyzes related theories (the principal-agent theory, the theory of media management and corporate governance theory) and then puts forward two hypotheses; the fourth part discusses the design of the study, including the sample selection of excessive on-the-job consumption, the necessary data sources, the selection of variables and the design of the two models; the fifth part is the empirical test and analyses of the study, mainly launching descriptive statistics and analyzing on-the-job consumption, media supervision and internal, then conducting multiple regression test and robustness test on the two models presented; The sixth part is the conclusion of this paper, including solutions of the problems of excessive on-the-job consumption on the basis of empirical analysis, and the contribution and limitation of this paper.