Media Monitoring, Crisis Public Relations and Enterprise Performance

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.