Research On The Impact Of Executive Compensation On Enterprise Value Under Media Attention

With the rapid development of economy and society,people increasingly recognize the importance of information.As a carrier of information dissemination,media plays an increasingly important role in corporate governance.In news media reports on information disclosure by listed companies,executive compensation related to income distribution issues has always been the focus of public attention.Media attention can effectively improve information transparency,reduce information asymmetry,and reduce agency costs.The role of media attention in external governance and supervision of enterprises is increasingly evident.Therefore,this article chooses to study whether media attention has a unique role between executive compensation and corporate value from the perspective of media attention.This article takes Shanghai and Shenzhen A-share listed companies from 2012 to 2019 as the research object,combines principal-agent theory,incentive theory,reputation mechanism theory,media governance theory,and negative bias theory,and uses methods such as literature collection,empirical analysis,inductive deduction,and comparative analysis to study the relationship between media attention,executive compensation,and corporate value.This article not only considers monetary compensation incentives and equity compensation incentives from the perspective of complete compensation,but also studies traditional media attention,including online media attention,and conducts regression analysis from both the number and nature of media attention.The regression results show that:(1)the increase in executive compensation can promote the promotion of enterprise value;(2)The amount of media attention can strengthen the positive relationship between executive compensation and corporate value,that is,the more media attention,the better the reinforcement effect;(3)The nature of media attention can affect the aforementioned effects: positive media attention can weaken the positive relationship between executive compensation and corporate value,while negative media attention can enhance the positive relationship between the two.Secondly,after further analysis based on property rights attributes,it can be concluded that media attention plays a more significant role in the relationship between executive compensation and corporate value in non-state owned enterprises than in state-owned enterprises.Then,a robustness test is conducted through variable substitution and propensity score matching to enhance the credibility of this article.Finally,based on empirical analysis,suggestions and countermeasures are proposed for relevant departments: enterprises should strengthen information disclosure and improve their compensation system;The media should improve the professional quality of authors,establish good social credibility,and actively play the role of corporate governance;The government should grasp the development direction of the media industry and strengthen supervision over exposed enterprises.This study enriches the research on executive compensation and corporate value,while supplementing literature on traditional media attention and strengthening basic research on online media attention,proving that media attention can play a moderating role between executive compensation and corporate value.To provide theoretical and practical guidance for the media to play a governance role,promote the improvement of compensation and incentive systems in enterprises,and enhance corporate value.