The power of the pen reconsidered: The media, CEO human capital, and corporate governance

Liu, Baixiao; McConnell, John J.; Xu, Wanjin

doi:10.1016/j.jbankfin.2016.12.004

Cited by 48 publications

(48 citation statements)

References 21 publications

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“…Other studies adopt slightly diverging perspectives. Using an economic-rational framework to study effects of media coverage, B. Liu, McConnell, and Xu argue that “the media can influence the human capital of managers by disseminating information about his actions and by shaping perceptions of those actions” (2017: 175). Conversely, Westphal and Deephouse stress that “journalists’ assessments of a firm’s leadership and strategy can be highly subjective, and their decisions about what information to report or emphasize in writing an article .…”

Section: Resultsmentioning

confidence: 99%

“…B. Liu, McConnell, and Xu (2017) find that favorable media coverage of CEOs-as well as of the firms they manage-is associated with more nonexecutive board positions, longer board tenure, and higher compensation for these CEOs after their tenures. In addition, Farrell and Whidbee (2002) and Bednar (2012) find that the favorability of media coverage influences the CEO's job security.…”

Section: Governance Contextmentioning

confidence: 94%

“…Specifically, media coverage may contribute to-or endanger-managers' human capital (Kang & Kim, 2017) and employment prospects (B. Liu, McConnell, & Xu, 2017). Also, CEOs may engage in more individual responses to coverage by individual journalists than firms could do, such as social distancing from these journalists (Shani & Westphal, 2016).…”

Section: Consequences Of Firm-related News Media Coverage and Relatedmentioning

confidence: 99%

See 2 more Smart Citations

Media Coverage of Firms: Background, Integration, and Directions for Future Research

Graf‐Vlachy

Oliver

Banfield

et al. 2019

Journal of Management

127

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Over the past years, media coverage of firms has received significant scholarly attention. However, the resulting literature is spread across multiple disciplines and, therefore, varies with regard to its theoretical underpinnings and contextual settings. This makes it challenging for scholars to understand the contributions of this literature, to identify areas of inquiry, and to develop an encompassing research agenda. In this review, we address these issues by surveying the diverse literature on media coverage of firms to develop an integrative framework of the antecedents and consequences of media coverage that highlights paths for future research. Specifically, we identify the three theoretical perspectives—economic, institutional, and social-psychological—that the literature generally assumes on the news media. In addition, we highlight differences between strategy, finance, governance, and crisis contexts and review results from articles examining media coverage of firms in aggregate. In each context, we identify the primary functions of the news media as well as antecedents and consequences of media coverage. We proceed to develop an integrative framework for media coverage of firms by building on these findings and by examining the empirical methods used to measure media coverage, particularly regarding the measurement of specific coverage attributes. We highlight the gaps in current knowledge that our framework exposes and derive opportunities for future research that can further scholars’ and practitioners’ understanding of firm media coverage.

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Section: Resultsmentioning

confidence: 99%

Section: Governance Contextmentioning

confidence: 94%

Section: Consequences Of Firm-related News Media Coverage and Relatedmentioning

confidence: 99%

See 1 more Smart Citation

Media Coverage of Firms: Background, Integration, and Directions for Future Research

Graf‐Vlachy

Oliver

Banfield

et al. 2019

Journal of Management

127

View full text Add to dashboard Cite

show abstract

“…In the capital market, the media plays a key intermediary role in information disclosure, pooling, and diffusion, which significantly reduces the cost of information collection and reflects its governance functions (Liu, McConnell, & Xu, ). Prior studies show that media reports not only ease the information asymmetry between firms and stakeholders (Aerts & Cormier, ) but also affect the reputation of executives (Love et al, ).…”

Section: Hypothesis Developmentmentioning

confidence: 99%

Executives' excess compensation, legitimacy, and environmental information disclosure in Chinese heavily polluting companies: The moderating role of media pressure

Chen

et al. 2018

Corp Soc Responsibility Env

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This study examines whether executives justify their excess compensation through environmental information disclosure using a sample of listed companies in China's heavily polluting industries from 2010 to 2014. We find that executives' excess compensation is positively related to the quality of environmental information disclosure.The above relationship is significant in cases with strong demand for compensation justification (i.e., state-owned enterprises and firms where an internal compensation gap is salient), indicating that executives manipulate environmental information disclosure about their companies according to their purposes. We also find that media pressure weakens the above relationship. A further test affirms a differential influence of media pressure in settings that involve public or private ownership, development of markets, and low or high product market competition. This study reveals a self-serving motive of executives for environmental information disclosure. The findings of this study have practical implications for regulators, shareholders, and managers.

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“…Aguilera & Jackson (2003) develop a theoretical model to describe and explain variation in corporate governance among advanced capitalist economies. Liu, McConnell, & Xu (2017) find that the media can play a role in corporate governance by influencing the value of CEOs' human capital. Jensen & Meckling (1976) integrate elements from the theory of agency, the theory of property rights and the theory of finance to develop a theory of the ownership structure of the firm.…”

Section: Introductionmentioning

confidence: 97%

Long-Term Competitiveness Based on Value Added Measures as Part of Highly Professionalized Corporate Governance Management of German Dax 30 Corporations

Blendinger¹,

Michalski²

2018

JOC

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This paper shows how long-term value added driven competitiveness is widely adopted by German DAX 30 corporations and how it can be measured. It explains and shows how different measures such as shareholder value, economic value added (EVA), return on capital employed (ROCE), return on equity (ROE) and others are calculated and how they correlate to show longterm value added and, therefore, competitive differentiation. As part of the highly professionalized corporate governance approach, the German Corporate Governance Codex (Regierungskommision Deutscher Corporate Governance Kodex, 2015) asks for "sustainable creation of value". The analyses of 2015 and 2016 annual reports of all 30 corporations state that 80% of the firms show financially relevant value added data and as such measurable competitive advantage on the long run. The paper focuses on which measures are used to quantify the competitive value addition and then shows how EVA or company specific EVA-like measures in addition to ROCE are the most used ones. Furthermore, the paper shows that ROCE with a factor of 0.97 in 2015 and 0.74 in 2016 correlates best with EVA and, in absence of an EVA calculation, is the best measure to represent value creation as a competitive differentiator. The results can be useful to strengthen competitiveness for policymakers both in non-profit and for-profit social economy entities.

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The power of the pen reconsidered: The media, CEO human capital, and corporate governance

Cited by 48 publications

References 21 publications

Media Coverage of Firms: Background, Integration, and Directions for Future Research

Media Coverage of Firms: Background, Integration, and Directions for Future Research

Executives' excess compensation, legitimacy, and environmental information disclosure in Chinese heavily polluting companies: The moderating role of media pressure

Long-Term Competitiveness Based on Value Added Measures as Part of Highly Professionalized Corporate Governance Management of German Dax 30 Corporations

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