Title: Sensitivity of executive remuneration to social and traditional media exposure in China

Authors: Greg Shailer; Shi Shu

Addresses: Research School of Accounting, The Australian National University, PAP Moran Building #21, Canberra ACT 2601, Australia ' Research School of Accounting, The Australian National University, PAP Moran Building #21, Canberra ACT 2601, Australia

Abstract: This study examines Chinese corporations' remuneration sensitivities to their social media and traditional media exposure. Distinguishing privately controlled, central government-controlled and local government-controlled corporations, we estimate relations between changes in relative social and traditional media exposure and subsequent changes in executive remuneration, which is a socially and politically sensitive issue in China. We find that privately controlled corporations appear more sensitive to the threat of public opinion implied by social media exposure, while central government-controlled corporations are more sensitive to traditional media exposure. The results are robust to alternative model specifications and different measures of key variables.

Keywords: social media; news media; traditional media; executive remuneration; corporate governance; corporate ownership; corporate control; corporate sensitivity; executive remuneration; China.

DOI: 10.1504/IJCG.2024.138084

International Journal of Corporate Governance, 2024 Vol.14 No.2, pp.118 - 147

Accepted: 15 Dec 2023
Published online: 21 Apr 2024 *

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