CEO Exposure, Media Influence, and Stock Returns

Self Cite

Media-aware stock performance has been well recognized in recent studies. Previous research, however, focused on the content influence of the media, ignoring the manner in which the media is delivered. Based on the trust theory, this study argues that the media platforms, as media distribution vehicles and trust endorsement for news, are themselves influential on the stock market. This paper collected news data from seven Chinese mainstream media platforms and classified them into official, professional, and mass media platforms to investigate the impact of different platforms. The authors find that high official and professional media coverage predict increased abnormal returns, while high mass media coverage predicts the opposite. In addition, this paper systematically explores the mechanism of media platforms on stock performance from the perspectives of platform content, audience, and publication timeliness. The findings include that investors' attention to media platforms has a moderating effect on the stock performance, and such an effect is more salient in bear markets.

Section: Media Platformsmentioning

confidence: 99%

Media Platforms and Stock Performance

Jin

Wang

Tan

et al. 2022

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“…As such, the impact of news is derived from investors' attention to its content (Li et al, 2018). Limited attention theory posits that the impact of different information on investors' attention varies (Chen et al, 2021). For example, Li et al (2014b) found that news on topics such as penalties for violations, mergers, and acquisitions had a greater impact on the stock market than on topics such as executive and operational performance.…”

Section: Related Workmentioning

confidence: 99%

The Effect of ESG News on the Chinese Stock Market

Chen

Zhao

et al. 2022

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The relation between corporate environmental, social, and governance (ESG) performance and firm value has received increasing attention. However, the recent literature on corporate ESG performance evaluation suffers from potentially biased data sources, incomplete coverage, and uncertainty among agencies. The objectivity, timeliness, and breadth of news allow the media to provide a good perspective on ESG instead. This study investigated the effects of ESG-related news on the stock market to confirm that news is a helpful complement to the assessment of ESG performance. The results show that 1) ESG news has a greater and more significant impact on the stock market than news unrelated to ESG. 2) Of the three fields of ESG news, environmental news has a greater and more significant impact, which varies widely by topic. 3) Environmental news has different impacts on listed firms in different regions. This study provides new ideas for a complete and objective assessment of corporate ESG performance and the management of a corporate media image from the use of ESG news.

“…The most common research uses content to predict the performance of stock markets. In fact, in recent years, research has burgeoned surrounding social media platforms and stock markets (Chen et al, 2021;Jin et al, 2022). While most studies have focused on the wisdom of the crowd (Bollen et al, 2011;Cheng & Yang, 2022), few have concentrated on individual perspectives (Ajjoub et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Presidential Attack Risk

Chen

Xiao

Chen

et al. 2023

The prevalence of social media has inspired multiple researchers to investigate the value of information on various platforms. However, most studies focus on integrating individual views (the wisdom of the crowd), and few studies investigate just one person's effect. To close this gap, this article investigates the impact of Trump's tweets on stock markets. Based on intraday stock market data, this study uses an event study to test the immediate reaction of the stock markets in both the Chinese and U.S. markets. Next, with ordinary least squares (OLS) regression, this study testes the effect of tweets' content features on the returns and volatility of the Chinese and U.S. indices. The results show that Trump's tweets impacted the financial market, especially the returns of the U.S. stock market during the COVID-19 pandemic. With additional analyses based on industry indices and time frequencies, the researchers found that Trump's sentiment on Twitter affected the Chinese financial industry during the trade war and impacted the Chinese pharmaceutical industry during the pandemic.