Say-on-Pay Votes: The Role of the Media |
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| Authors: | Reggy Hooghiemstra Yu Flora Kuang Bo Qin |
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| Institution: | 1. Faculty of Economics and Business, Department of Accounting, University of Groningen, Groningen, The Netherlandsr.b.h.hooghiemstra@rug.nl;3. Department of Accounting, VU University Amsterdam, Amsterdam, The Netherlands;4. Amsterdam Business School – Accounting Section, University of Amsterdam, Amsterdam, The Netherlands |
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| Abstract: | AbstractWe investigate the association between the media coverage of firms’ CEO pay packages and subsequent shareholder voting on say-on-pay resolutions, and find that negative media coverage is able to predict shareholder discontent over say on pay. When we divide media coverage into coverage in the financial and business press versus coverage in the general press, we find that shareholder voting on say-on-pay resolutions is mainly associated with the articles from the financial and business press. This suggests that the media cannot be considered a homogeneous information source that is equally able to predict shareholders’ voting behaviors. As such, our findings have important implications for studies on the role of the media in corporate governance. |
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