Research On The Influence Of CEO Power On Firm Performance Based On Media Attention

Power is a key factor in determining the resource allocation and organizational performance. Although CEO power has a significant impact on firm performance, the research conclusion about the impact of CEO power on firm performance has not unified. The core objective of corporate governance is to improve corporate performance, so it's important to explore the relationship between CEO power and firm performance. Corporate performance is not only affected by internal governance factors, but also closely related to external governance mechanisms. Media attention as an important complement to the legal system, whether it can effectively adjust the relationship between CEO power and firm performance, and to promote the CEO power to improve firm performance? Under Chinese special institutional background, the impact of media attention on the relationship between CEO power and firm performance, whether there are differences in different enterprises?Based on the above problems, by taking the China's A-share listed companies from 2009 to 2014 as samples, this paper examines the impact of CEO power on firm performance, and the moderating effect of media attention on the relationship between the two. The results showed that CEO power and corporate performance is an inverted U-shaped relationship, and there is a critical value of CEO power to improve corporate performance. Media attention weakens the negative impact of CEO power on firm performance. The higher the degree of media attention is, the weaker the inverted U-shaped relationship between CEO power and firm performance is, and the critical value of CEO power has increased. With the improvement of the level of media attention, the relationship between CEO power and firm performance converts into an inverted U-shaped from negative correlation in state-owned enterprises, while the relationship between CEO power and firm performance converts into positive correlation from an inverted U-shaped in non-state-owned enterprises.According to research findings, we propose that the company should improve the CEO incentive-restraint mechanisms and make use of the oversight function of media attention, and the government should improve the manager market and media industry, for enterprises to optimize their CEO power, and enhance their performance.