Executive Compensation,media Coverage And Corporate Performance

With the rapid development of China's economy and technology,people have more diversified access to information.As a carrier of information transmission,media delivers information to the public in a more convenient and efficient way.At the same time,media coverage is playing a more and more important role as an external means of corporate governance.Listed companies disclose corporate governance information every year,among which executive compensation has become the focus of public attention due to the issue of fair income distribution.For example,in the context of the financial crisis,many executives still receive "sky-high salary",and the implementation of "salary restriction" for central enterprises and other events have made the public doubt whether the executive compensation is matching with the corporate performance they create.The media coverage has both positive and negative,if the corporates cannot be alert to dangers in times of safety when faced with positive coverage.If the company can response to negative reports timely,correct improper behaviors and regain reputation,then the company can also improve performance and create good results.Media coverage reduce the problem of information asymmetry between enterprises and stakeholders,increase the transparency of enterprise information,reduce the agency cost,and the governance and supervision role of media is increasingly prominent.Based on the principal-agent theory,incentive theory,reputation mechanism theory and media governance theory,this paper takes 2898 A-share listed companies from Shanghai and Shenzhen during 2008-2017 as research samples and studies the relationship between executive compensation,media coverage and corporate performance.This paper collates the data of media coverage manually,studying from the aspect of quantity of media coverage and nature of media coverage respectively,and divides the media coverage into positive coverage and negative coverage.Through the empirical analysis,it is found that:(1)Executive compensation can promote the corporate performance.(2)The number of media coverage has a moderating effect on the relationship between executive compensation and corporate performance,that is,the higher the media attention,the stronger the moderating effect.(3)Positive media coverage will weaken the promotion effect of executive compensation on corporate performance;negative media coverage can enhance the promotion effect of executive compensation on corporate performance.In addition,after the further study of the sample based on the property right nature and the enterprise performance lagging by one period,the results remain unchanged.Thus,it can be seen that executive compensation has an incentive effect on corporate performance,and media coverage have a significant external governance effect on enterprises.Enterprises can improve corporate performance by improving the executive compensation structure,increasing media exposure and giving timely feedback to negative reports.This paper breaks the industry limitations and combines media governance with the improvement of corporate performance,providing a theoretical basis for the study of executive compensation,media coverage and corporate performance.