Say-on-Pay Votes: The Role of the Media

Posted: 4 Apr 2015 Last revised: 11 Aug 2017

See all articles by Reggy Hooghiemstra

Reggy Hooghiemstra

University of Groningen - Faculty of Economics and Business

Yu Flora Kuang

The University of Melbourne

Bo Qin

The University of Melbourne

Date Written: October 2, 2015

Abstract

We 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.

Keywords: Executive compensation, Media coverage, Say on pay, Shareholder voting

JEL Classification: M20, M40, M52, G30

Suggested Citation

Hooghiemstra, Reggy and Kuang, Yu and Qin, Bo, Say-on-Pay Votes: The Role of the Media (October 2, 2015). European Accounting Review 24(4): 753-778, 2016. Available at SSRN: https://ssrn.com/abstract=2589333

Reggy Hooghiemstra (Contact Author)

University of Groningen - Faculty of Economics and Business ( email )

Department of Auditing
P.O. Box 800
9700 AH Groningen
Netherlands
31 50 363 3768 (Phone)
31 50 363 7174 (Fax)

Yu Kuang

The University of Melbourne ( email )

Level 7, The Spot
198 Berkeley St
Carlton, Victoria 3053
Australia
+61383449361 (Phone)
+61393492397 (Fax)

Bo Qin

The University of Melbourne ( email )

Level 8, Department of Accounting
Carlton, Victoria 3053
Australia
+61383449361 (Phone)
+61393492397 (Fax)

HOME PAGE: http://www.findanexpert.unimelb.edu.au/display/person743093#tab-overview

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