An Empirical Study On The Relevance Of Media Monitoring And Perks From Listed Companies

As executives held important positions in the management of the company, they are responsible for the company’s management, master important company information. Executives’behavior directly affects the company’s performance and value creation issues. A company’s orderly development lies in professional and efficient company’s executive team. With the continuous expansion of business scale and increasing complexity of operations, executives solved the management aspects of the problem because of their specialized features. But the separation of ownership and management has brought the agency problem. Formally, the management agency problems include excessive perks, corporate blind expansion, etc.(Tian Lihui,2005). Perks has played a certain economic functions in the company’s business activities, such as improving employee productivity, enhancing the status of companies and executives, winning more customers, etc. However, excessive perks become part of the high agency costs. Executives, who do not only understand the internal institution of the business but also have control power, could acquire more profits by taking advantage of the leak of the institutions. From the point of view of information disclosure of listed companies, less than half of the listed companies select to disclose their perks, and they did not disclose the contents with a certain standard. And the quality of the disclosure is not ideal. The concealment of perks provided embezzlement natural umbrella for the management of the use of perks interests. High agency costs undermine the competitiveness of the company and harm the interests of investors. In addition, excessive perks also related with social justice issues and corruption. The research is important for achieving equitable income distribution. Most of the previous studies focused on relying law and institution to govern perks, but the consequence is not desirable, especially in the transition economy in which there are some leaks in the law and institution. Based on existing research, this thesis will broaden the perspective of outside legal governance mechanisms to study the impact of media supervision of perks and the pathways.Firstly, this thesis analyzed the logical relationships among media monitoring, administrative intervention and perks based on the previous studies and related theories, including corporate governance theory, principal-agent theory and so on. And then this thesis has collected the data from the companies which have listed in the Shanghai Stock Exchange and Shenzhen Stock Exchange with A share from2011to2013after some deletion as sample to make empirical examination. This thesis has conducted a series of empirical examination basing on the results of descriptive statistics on the sample. The series of empirical examinations include examination on the relation of media monitoring and perks, the influence of administrative intervention and the "lag effect" of media monitoring.Surrounding on the research topic, there are six parts in this thesis:the first part is the introduction, mainly elaborating the significance of the topic and research background, research contents and research method, and innovation points; the second part is a literature review, sorting out the relation between media monitoring and perks by reviewing on the pertinent literatures on media monitoring and perks domestic and overseas; the third part is mainly to analyze the related theories and put forward the two assumptions in this thesis; the fourth part is to introduce the study design, including sample selection and data source, variable designs and model design; the fifth part is the empirical examination and analysis, including descriptive statistics on sample and the empirical examination on the two assumptions; the sixth part is to propose some policy and suggestions basing on the empirical conclusion.Through the study, we found that media supervision of listed company executives has a significant regulatory role on perks but this role is not persistent. Media monitoring play a lead role in reducing the perks of listed companies by administrative intervention.