Inequality Grows in Silence: The Impact of Newspaper Closures on CEO-Worker Pay Disparity
Prof. JIE CHEN
Professor of Finance, Accounting and Finance Department, University of Leeds, United Kingdom
Date: 29 April 2025 (Tuesday)
Time: 10:00 – 11:30
Venue: E22-G015
Host: Prof. Jason Zezhong XIAO, Professor in Accounting
Abstract
Addressing income inequality is crucial for ensuring equitable and prosperous societies. This study examines the impact of local press on intra-firm pay disparity. By utilizing the recently mandated disclosures of CEO-worker pay ratios and analyzing the staggered shutdown of local newspapers, we find that firms’ pay disparity increases by 7.9% following newspaper closures. Further analysis suggests that this post-closure increase in pay disparity ratio is unlikely to be driven by either of its components alone or underlying economic conditions, but rather by reduced reputational concerns. Overall, our findings provide insights into the role played by local newspapers in monitoring pay disparity.
Speaker
Jie Chen is Professor of Finance in the Accounting and Finance Department at the University of Leeds. He joined Leeds in August 2018 as an Associate Professor of Accounting and Finance. Prior to that, he has worked as a Lecturer of Finance at Cardiff Business School, Cardiff University. In 2014, Jie was awarded PhD in Finance from the University of Bristol where he has also worked as a teaching assistant. Jie’s research interests include mainly empirical corporate finance and corporate governance, such as executive compensation, board of directors, mergers and acquisitions, and dividend policies. Jie is also interested in corporate innovation, default risk, banking, corporate social responsibility and various aspects of behavioral finance (in particular the role of managerial overconfidence and gender diversity).
All are welcome!
