The corporate governance role of the media
By: Alexander Dyck, Luigi Zingales
Contributors: Zingales, Luigi; Harvard Business School. Division of Research
Series: Working paper / Division of Research, Harvard Business School -- 03-051; Working paper (Harvard Business School. Division of Research) -- 03-051
Publisher: Division of Research, Harvard Business School
Published: 2002
Place of publication: Boston]
Language: eng
Number of pages: 33
Subjects: Mass media and business; Mass media; Social aspects; Corporate governance
Description: Do media play any role in corporate governance? In this paper we argue that media pressure corporate managers and directors to behave in ways that are "socially acceptable". Sometimes this coincides with shareholders' value maximization, others not. We provide both anecdotal and systematic evidence that media affect companies' policy toward the environment and the amount of corporate resources that are diverted to the sole advantage of controlling shareholders. Our results have important consequences for the focus of corporate governance debate and for the feasibility of reforms aimed at improving corporate governance around the world.
Notes: Includes bibliographical references.