Media Coverage,executive's Empire Building And Nonfeasance

The report of the 19 th National Congress of the Communist Party of China clearly pointed out that "Improving the dissemination,guidance,influence,and credibility of news and public opinion." At this stage,media reports have a major impact on individuals,enterprises,and even the country.However,executives' empire building and nonfeasance are long-standing agency problems in enterprises,which have a negative impact on the value maximization of companies and shareholders.Based on the principal-agent theory,information asymmetry theory,reputation theory,media bias theory and media governance theory,this article selects panel data of A-share listed companies from 2012 to 2017.This article conducts an empirical study on the relationship between media coverage,executives' empire building and nonfeasance.At the same time,it was tested whether the information asymmetry mechanism,the supervision mechanism,the reputation mechanism,and the corporate governance mechanism played an intermediary role in this process.The study found that:(1)Media coverage have a certain inhibitory effect on executives' empire building and nonfeasance,and media coverage have a stronger inhibitory effect on executives' empire building.(2)This kind of influence relationship has a certain degree of heterogeneity: the research results indicate that the inhibitory effect of media reports on senior executives' empire building is more significant in non-state-owned enterprises,and the impact on the nonfeasance of executives is that the media coverage and nonfeasance are weakly positively correlated in nonstate-owned enterprises.In the case of different levels of marketization,media coverage on executives' empire building and nonfeasance are more significant in regions with a high degree of marketization.(3)The channel of information asymmetry the channel of supervision play an intermediary role in media reports and executives' nonfeasance,but they have not played an intermediary role in media reports and executives' empire building.The channel of reputation and the channel of corporate governance does not play an intermediary role in media coverage,executives' empire building and nonfeasance.This article explores the relationship between media coverage and executives' great achievement and nonfeasance,which helps to dialectically look at the role of media coverage,and the government should actively guide the media to report objective and accurate content to better serve the operation of the capital market.