Executive Pay Gap,Negative Media Coverage And Corporate Social Responsibility

The issue of social responsibility has always been a difficult problem that can not be ignored in enterprise management.In recent years,domestic responsible safety accidents and food safety problems have,occurred frequently,causing panic among people and having a great impact on the industry and the capital market.The government has repeatedly promulgated relevant laws and regulations to strengthen supervision,but the implementation of social responsibility is still fraught with difficulties.Combing previous studies,we can find that the difficulties of implementation of corporate social responsibility can be solved through internal incentives and external constraints.Executive pay gap is one of the main forms of internal incentives.Executives have the authority to allocate various resources of the enterprise to ensure the interests of stakeholders.The appropriate setting of the pay gap can make the executive interest goals consistent with the corporate interest goals and enable executives to actively promote corporate social responsibility to seek the long-term development of the enterpr se.Media coverage has external constraints on corporate behavior.M edia coverage can not only alleviate the problem of information asymmetry through the disclosure of business information,but also affect the reputation of enterprises and executives.Therefore,media coverage,especially negative media coverage,are significantly binding on the behavior of senior executives.Based on this,this paper intends to combine the internal incentive mechanism and external restraint mechanism to examine the role of executive pay gap and negative media coverage to promote corporate social responsibility.This paper divides the executive pay gap into internal pay gap and external pay gap.Using stakeholder theory,principal-agent theory,tournament theory and manager market-reputation theory,this paper analyzes the incentive mechanism of internal and external pay gap on corporate social responsibility,as well as the regulating effect of media negative coverage on the correlation between executive pay gap and corporate social responsibility.This paper takes the A-share listed companies that disclose corporate social responsibility reports in China in 2013-2017 as the research sample.In order to ensure the accuracy and reliability of the empirical results,this paper comprehensively uses relative indicators and absolute indicators to measure the executive pay gap.Multiple regression model is used to examine the internal relationship between executive pay gap and corporate social responsibility from the empirical level,and futher examine the impact of negative media coverage on the relationship between them.The empirical results show that the internal and external pay gaps of senior executives are positively correlated with corporate social responsibility;negative media coverage strengthen the promotion of executive pay gap to corporate social responsibility.This paper draws a conclusion:properly widening the internal and external pay gap of executives will help companies to better fulfill their social responsibility,and negative media coverage has a positive regulating effect on the above process.According to the research results,this paper puts forward some suggestions based on the enterprise perspective:bring corporate social responsibility into the executive performance appraisal system,optimize the executive compensation structure and improve the internal supervision mechanism.Based on the media perspective,this paper puts forward some suggestions:pay attention to the operation of the enterprises,report objectively and impartially,and improve the authority and influence of the media.