Research On The Influence Of Media Reports On Sensitivity Of Executive Compensation

Executive compensation is an important part of the standardized governance of listed companies.Whether the compensation mechanism is effective for executives is of great significance to enterprises.Separation of ownership and management rights is a form of operation commonly adopted by listed companies.This form of operation makes the personal interests of executives and the interests of shareholders intertwined.The best form of salary contract is the organic combination of maximizing the personal interests of executives and shareholders.Therefore,establishing a reasonable and effective executive compensation system can not only better mobilize the enthusiasm of senior executives and stimulate their enthusiasm for work,but also attract and retain more core talents in a highly competitive market environment.This will ensure the steady growth of the company's economic benefits.However,in actual company operations,the power of executives has subtly expanded,making the pay contract system superficial.Executives have the ability and motivation to have the power to surpass the board of directors and even the controlling shareholder in the process of making their own pay contract.Against the backdrop of China's economic transformation,the weakening of governance is highlighted.As people enter the rapidly developing society of information and media,the media's role of transmitting information and reflecting social reality make it play an indispensable role in life and work.Media reports,as an independent external public monitoring force,play an increasingly important role in corporate governance.So,what is the interaction mechanism between media reports and executive compensation,how do they function,and will media reports improve the performance sensitivity of compensation after they play a role,and in what market environment and property nature can the performance sensitivity of compensation be? Play the biggest role.Under many doubts,it is urgent to take media reports and executive compensation as research objects,and to conduct an in-depth combing and exploration of the interaction mechanism between them.Therefore,this article analyzes executive compensation from a media perspective to study the impact of media reports on the sensitivity of executive compensation performance.After sorting out the literature at home and abroad,it is not difficult to find that media reports and executive compensation have been thoroughly researched in their respective fields,but there are few articles that link the two to conduct joint research.This article systematically analyzes and summarizes themechanism between the executive compensation and media reports,based on the principal-agent theory,optimal contract theory and management rights theory,in-depth analysis of media reports Three governance paths for executive compensation and regression analysis.This article selects listed manufacturing companies in the secondary industry as the research object,collects data information from 2014 to 2018,uses executive compensation as the explanatory variable,and takes media reports,corporate performance,and the cross-product of the two as the explanatory variables.Construct a measurement model,and use the stepwise regression method to add the asset-liability ratio,enterprise size,shareholding ratio of the largest shareholder,the size of the board of directors,and net profit as control variables to the measurement model in turn.In order to more deeply analyze the mechanism of media reports on executive compensation,the listed sample companies will be classified according to the two different property rights of state-owned enterprises and private enterprises;according to the different levels of regional economic development,they will be divided into western regions,Central and eastern subsamples.Through theoretical analysis and empirical testing,this article draws the following conclusions:(1)The more media coverage of listed companies,the more attention paid to executive compensation,and the greater the sensitivity of executive compensation-performance.(2)After classifying listed companies into state-owned enterprises and private enterprises,it was found that the positive correlation of media reports on the sensitivity of executive compensation performance was significantly established in companies with different property rights,meaning that media reports on state-owned enterprises and private enterprises All have strong restraining effects,which increase the sensitivity of executive compensation performance of state-owned enterprises and private enterprises.Compared with state-owned enterprises,the impact of media reports on private enterprises is more significant.(3)At different levels of economic development,media reports have different effects on the sensitivity of executive compensation performance.In the eastern region,the more listed companies receive media coverage,the more sensitive their executive compensation performance.This effect is not significant in the central and western regions.Through theoretical analysis and research results obtained through empirical research,this article canbe enlightened in three aspects: first,attach importance to the construction of media guidance and credibility,accelerate the process of media marketization,and create an atmosphere for media to do practical things.Second,pay attention to and make good use of the role of media supervisor,so that the general public can participate through the media and jointly supervise the management performance and remuneration level of senior executives.Third,further improve the macro-control system.The government should also be open and transparent in the process of regulation and control,actively accept the supervision of the media and the public,give the media room to tell the truth,effectively evade the rent-seeking of power and interests,and jointly create a virtuous cycle of the macro environment.