Negative Media Coverage,Management Reputation and Firm Performance Improvement:Evidence from China's Listed Firms
研究发现负面媒体报道与中国上市公司下一期业绩改善显著正相关，表明媒体可通过影响管理层声誉发挥公司治理作用。
Media coverage could theoretically play a role of corporate governance by making management behavior sensitive to the interests of the public besides introduction of administrative intervention of the regulation authorities. Based on the data of the Chinese listed firms,this paper shows that negative media coverage is significantly and positively correlated with the firm performance improvement for the next period.After controlling the various potential influential factors as well as endogeneity of media coverage,the paper therefore provides the indirect evidence that media coverage could play a role of corporate governance by affecting management reputation. The results indicate that media coverage could play a role of corporate governance for the Chinese listed firms as one of the important extra-legal institution since it may not only introduce administrative intervention of the regulation authorities,but also work by way of affecting management reputations.