An Empirical Study On The Relationship Between Media Supervision, Legal Environment And Executive Compensatio

Executive compensation and corporate performance don’t match the phenomenon at home and abroad are not uncommon.The executive compensation in China’s rapid development of the economy at the same time also entered the period of rapid growth, executive compensation reason by the vast number of investors, and even ordinary people’s attention, because those relating to the national economy and the people’s livelihood social hot such as social fair, corporate governance and corruption phenomenon and has a lot of connections. Unreasonable "salary", "zero pay" and the phenomenon of frequent also stimulate the public mood, media as the carrier, the information dissemination and diffusion functions prominent exception, amplifies the social effect. Based on China’s current stage of social development, the state of the economy and to consider, scholars more recognition of the media in the executive compensation management plays an important role, but the administrative mechanism and institutional factors exactly is how to affect executive pay less. In contemporary China, regional legal environment is not uniform under the conditions, this paper argues that the factors of the legal environment is also the executive compensation management to improve an important aspect of, the more macro, also can’t be ignored. Therefore, this paper will verify the different legal environment level of executive pay reasonable level is also different, so as to affirm the importance of the legal environment.This chapter according to the related theories and research results of empirical research, to 2013 violations of listed companies as the research object, the variables of comprehensive descriptive statistical analysis, the samples have a comprehensive understanding of the, and then made correlation analysis, to understand the correlation between the variables. In above build model assumptions about the empirical validation is performed. The regression results were proved that the media supervision degree is higher, the greater the decline in the level of executive compensation, the legal environment is better, the greater the decline in the level of executive compensation. But under different legal environment, media supervision on executive compensation effect of verification and has not been verified, so this paper will according to the level of legal environment index will sample companies divided into two samples, from the empirical results analysis, we can draw a conclusion that in good legal environment, negative media reports is relatively larger effects on executive compensation, where the legal environment isn’t good, even if there are negative media reports appear to affect executive compensation is not very obvious, thus confirming the hypothesis of this paper.