Nov No Economic Issues in China. Wysocki Wysocki

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1 Economic Issues in China Nov. 213 No Wysocki Wysocki Tumarkin and Whitelaw Hand 2 Cooper et al. 22 Wysocki 1999 Trueman et al. 2 Tumarkin and Whitelaw 21 Antweiler and Frank 24 Trueman

2 Antweiler and Frank Antweiler and Frank Core et. al 28 Dyck et al Dyck 28 Kurt Lewin 27 2 /3 McCombs and Shaw

3 CSMAR LnFirm LnName Ln- Firm Ln- Name 2 Negative " Negative Wysocki 1998 Tumarkin and Whitelaw 21 Antweiler and Frank 24 Core et al LnPay i t-1 Ln ΔPay it Negativepay it SOE it Chairman it

4 LnSales i t-1 Posroa i t-1 Negroa i t-1 Yret it Posret it Negret it Posret i t-1 Negret i t-1 Adj_Ret it Adj_Roa it LnName LnFirm Ln ΔPay Negative Negativepay LnSales Posroa Negroa Posret Negret Yret Adj_Ret Adj_Roa t %

5 LnName it = α + β 1 LnPay i t -1 + λ j Controly j + Industry + Year 1 LnFrim it = α + β 1 LnPay i t -1 + λ j Controly j + Industry + Year 2 Control j SOE it Chairman it LnSales i t-1 Posroa it Negroa it Posret it Negret it Posret i t-1 Negroa i t-1 LnSales i t-1 Posroa it Negroa it Posret it Negret it Posret i t-1 Negroa i t C LnPay i t-1 SOE it Chairman it LnName it LnFirm it * *** *** *** *** *** *** *** *** *** Posroa it. 1 Negroa it LnSales i t-1 Posret it Negret it. 72 *** *** *** Posret i t *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** *** ***

6 Negret i t LnName it LnFirm it Industry Year N R AdjustR t *** ** * 1% 5% 1%. 79 Posroa it Negroa it Ln ΔPay it = α + β 1 LnName it + λ j Controly j + Year 3 Ln ΔPay it = α + β 1 LnFirm it + λ j Controly j + Year 4 Control j Adj_Ret it Adj_Roa it Lnsales i t C LnName it LnFirm it Ln ΔPay it *** *** *** *** Adj_Ret it Adj_Roa it *** *** * ** *

7 LnSales i t-1 Ln ΔPay it *** *** Year N R Adjust R Ln ΔPay it = α + β 1 Negative it + λ j Controly j + Year 5 C Negative it Adj_Ret it Ln ΔPay it Ln ΔPay it Ln ΔPay it *** *** *** Adj_Roa it LnSales i t *** * ** * *** ** *** Year N

8 % % Traditional_Negative it 14

9 1 C Negative it Ln ΔPay it Ln ΔPay it Ln ΔPay it *** *** Traditional _Negative it * Adj_Ret it Adj_Roa it LnSales i t ** *** * * *** ** Year N

10 Park and Lee Wysocki P D Cheap Talk on the Web the Determinants of Postings on Stock Message Boards EB /OL. Working paper. 2 Tumarkin R Whitelaw R F. 2. News or Noise Internet Postings and Stock Prices J. Financial Analysts Journal Cooper M J Dimitrov O Rau P R. 22. A Rose. com by Any Other Name J. The Journal of Finance Trueman B Wong M H F Zhang X. 2. The Eyeballs Have It Searching for the Value in Internet stocks J. Journal of Accounting Research 38 S Antweiler W Frank M. 24. Is All That Talk Just Noise The Information Content of Internet Stock Message Boards J. The Journal of Finance Core J E Guay W Larcker D F. 28. The Power of the Pen and Executive Compensation J. Journal of Financial Economics Dyck A Volchkova N Zingales L. 28. The Corporate Governance Role of the Media Evidence from Russia J. Journal of Finance Zingales L. 2. In Search of New Foundations J. The Journal of Finance McCombs E M Shaw D The Agenda-Setting Function of Mass Media J. Public Opinion Quarterly Park N Lee K M. 27. Effect of Online News Forum on Corporate Reputation J. Public Relations Review J The Pressure of Internet Public Opinion on the Executive Compensation Yang Jing Wu Cuifeng Xiamen University Xiamen 3615 Abstract In the modern knowledge-based economy and the information society internet has gradually become the major channel for people to access to the news and information. It has become more and more powerful in every day life. Our paper collects the message posted on the stock message boards of East Fortune website and constructs proxies measuring the public opinion on internet including the internet managers' attention and the internet negative comments about managers' compensation etc. to exam the effect of internet public opinion to executive compensation. We find that 1 Internet public opinion retains highly attention about the executive compensation. 2 Internet attention and the internet negative comments about managers compensation have significant effects on the change of executive compensation. 3 Compared to the traditional media internet has a more deeply and extra effect on the executive compensation. Key Words internet internet message board management compensation 16

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