The Media and Firm Reputation Roles in Corporate Governance Improvements: Lessons from European Dual Class Share Unifications
16 Pages Posted: 7 Jan 2017
Date Written: January 2017
Manuscript Type. Empirical.
Research Questions/Issues. Do media pressure and firm reputational concerns propel corporate governance improvements? Specifically, can they encourage unifications of dual class shares into a single “one share one vote” class?
Research Findings/Insights. Media criticism increases the likelihood of voluntary dual class share unifications. Firms more sensitive to public image are more likely to unify their dual class shares.
Theoretical/Academic Implications. Media plays an important role in corporate governance promotion. Firm reputation is a valuable asset, sensitive to public opinion and media criticism. Some real firm decisions can be influenced by firm image and reputation considerations.
Practitioner/Policy Implications. Firm image, reputation, and public relations activity are valuable. Media is a powerful and flexible tool that in some cases can substitute regulation in effectively restraining firms and their controlling shareholders.
Keywords: Corporate Governance, Dual Class Shares, Firm Reputation, Media Impact
Suggested Citation: Suggested Citation