The Role of The Media in Corporate Governance: Evidence From Shareholder Proposals

48 Pages Posted: 12 Feb 2019 Last revised: 13 Oct 2020

See all articles by Alberta Di Giuli

Alberta Di Giuli


Arthur Petit-Romec

SKEMA Business School; Université Côte d'Azur

Date Written: February 1, 2019


This paper examines the role played by the media in the shareholder proposal process. We find a positive relation between media coverage and the likelihood to be targeted by governance proposals. The effect is mostly concentrated in proposals submitted by non-institutional shareholders and driven by negative news. Negative media coverage is also associated with the success of proposals and changes in executive compensation and board turnover. Instrumental variable analysis and tests exploiting local newspaper closures suggest that the relationship between media coverage and shareholder proposals is causal. Our results shed light on a new channel through which the media can play a corporate governance role.

Keywords: Media Coverage, Corporate News, Shareholder Proposals, Corporate Governance

JEL Classification: G14, G30, G32, G41

Suggested Citation

Di Giuli, Alberta and Petit-Romec, Arthur, The Role of The Media in Corporate Governance: Evidence From Shareholder Proposals (February 1, 2019). Proceedings of Paris December 2020 Finance Meeting EUROFIDAI - ESSEC, Available at SSRN: or

Alberta Di Giuli

ESCP ( email )

Paris Campus
79, Avenue de la Republique
Paris, 75011

Arthur Petit-Romec (Contact Author)

SKEMA Business School ( email )

Sophia Antipolis

Université Côte d'Azur ( email )


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