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Media Monitoring, Crisis Public Relations and Enterprise Performance

Zeming Yuan, Candid Lin Fan and Yu Jin
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Zeming Yuan: Tianjin University of Finance and Economics, Tianjin China
Candid Lin Fan: Tianjin University of Finance and Economics, Tianjin China
Yu Jin: Tianjin University of Finance and Economics, Tianjin China

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Abstract: In the present Chinese economic transform, the market mechanism and legal system has not been established perfectly yet. As an informal system, media monitoring becomes a useful complement to the formal institutions such as the markets and laws. Actually, the enterprise which is facing with the media monitoring often takes crisis public relations (CPR) as a response to release the negative effects of media coverage. The empirical results show that: (1) There is a significantly negative relationship in the short-term and a significantly positive relationship in the long-term between the media monitoring and enterprise performance. (2) After considering the mechanism of CPR, the negative effects of media monitoring are released in the short-term, but it may not be conducive to the long-term development of enterprises. (3) Compared to the state-owned enterprises, we find that the above relationships have greater influence over the non-state-owned ones. Our paper enriches the research on understanding the mechanism how media monitoring affects the performance of enterprises in the short-term and long-term, and takes full account of the CPR fs release effect on media monitoring. We accordingly gives the corresponding policy recommendations.

Keywords: media monitoring; crisis public relations; enterprise performance; property right (search for similar items in EconPapers)
Date: 2017
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