Role of Media in Governance of Companies with the Moderation of Literacy: A Case of Pakistan

Abstract

This research has investigated the role of media in the governance of Karachi Stock Exchange (KSE) listed fertilizer companies. The study has taken the role of literacy as a moderator in the relationship. The main aim of this study is to improve the understanding of managers regarding the role of media in the governance of companies. The data was collected through a self-administered survey questionnaire. This research used the simple random sampling method for estimating the role of media in corporate governance with the moderating influence of literacy by using the data of two hundred top and middle-level managers from the fertilizer companies of the Southern Punjab region listed on the Karachi Stock Exchange. The results of this study are related to previous research work which represents that media have a significant positive role in corporate governance. The outcomes show that the relationship between corporate governance and media was enhanced through literacy. The results suggest that the top and middle-level managers should strongly consider the role of media as the main factor in shaping corporate governance. Also, as validated through the study findings, literacy also has a significant positive relationship between media and corporate governance. Thus, contriving strategies that help disseminate literacy and awareness on corporate governance through media will strengthen organizational management systems.