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The Media and Firm Reputation Roles in Corporate Governance Improvements: Lessons from European Dual Class Share Unifications
Author(s) -
Lauterbach Beni,
Pajuste Anete
Publication year - 2017
Publication title -
corporate governance: an international review
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.866
H-Index - 85
eISSN - 1467-8683
pISSN - 0964-8410
DOI - 10.1111/corg.12153
Subject(s) - reputation , corporate governance , dual (grammatical number) , business , shareholder , criticism , class (philosophy) , promotion (chess) , asset (computer security) , public relations , corporate social responsibility , accounting , political science , finance , art , literature , computer security , artificial intelligence , politics , computer science , law
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.