03-051
THE CORPORATE
GOVERNANCE ROLE OF THE MEDIA
Alexander Dyck and Luigi Zingales
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.
BGIE
35
pages
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