Corporate media connections and merger outcomes

Hossain, Miran; Javakhadze, David

doi:10.1016/j.jcorpfin.2020.101736

Cited by 19 publications

(4 citation statements)

References 71 publications

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“…This study advances this area of research by documenting (1) the direct effect of journalists' personal networks on media slant, (2) the spillover effect of journalist connections on the coverage of other (seconddegree connected) firms, and (3) potential career outcomes shaped by those networks. Because the incentives of financial reporters to spin the news (i.e., access to firm management) differ from those of corporate directors (i.e., enhancing corporate governance), my paper also complements other studies that examine companies' media directors and executives (Gurun [2020], Hossain and Javakhadze [2020], Ru et al [2020]).…”

Section: G Xumentioning

confidence: 76%

“…Ahern and Sosyura [2014] show that favorable news coverage affects acquirers' stock prices and deal terms. Hossain and Javakhadze [2020] examine directors who work in media firms. They find that media directors g. xu influence takeover premia and announcement returns by improving acquirers' media coverage before deal announcements.…”

Section: Media Coverage During Manda Negotiationsmentioning

confidence: 99%

“…A distinction between my findings and prior ones is that mine imply a connection effect through noninformation channels. For example, Hossain and Javakhadze [2020] note that companies’ media directors are positively associated with deal initiations and negatively correlated with takeover premiums. Unlike journalists, media directors are directly involved in M&A decision making.…”

Section: Consequences Of Journalist Networkmentioning

confidence: 99%

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News Bias in Financial Journalists’ Social Networks

2024

J of Accounting Research

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Connected financial journalists—those with working relationships, common school ties, or social media connections to company management—introduce a marked media slant into their news coverage. Using a comprehensive set of newspaper articles covering mergers and acquisition (M&A) transactions from 1997 to 2016, I find that connected journalists use significantly fewer negative words in their coverage of connected acquirers. These journalists are also more likely to quote connected executives and include less accurate language in their reporting. Moreover, they tend to portray other firms in the same network in a less negative light. Journalists’ favoritism bias has implications for both capital market outcomes and their careers. I find that acquirers whose M&As are covered by connected journalists receive significantly higher stock returns on the news article publication date. However, these acquirers’ stock prices reverse in the long term, suggesting market overreaction to news covered by connected journalists. Around M&A transactions, connected articles are correlated with increased bid competition and deal premiums. In terms of future career development, connected journalists are more likely to leave journalism and join their associated industries in the long run. Taken together, the evidence suggests that financial journalists’ personal networks promote news bias that potentially hinders the efficient dissemination of information.

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Section: G Xumentioning

confidence: 76%

Section: Media Coverage During Manda Negotiationsmentioning

confidence: 99%

Section: Consequences Of Journalist Networkmentioning

confidence: 99%

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News Bias in Financial Journalists’ Social Networks

2024

J of Accounting Research

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“…The accounting‐based performance measures have also been employed in research, for example, the returns on assets (ROAs), cash sales, flows and operating margins, which are more direct indicators of synergy gains or losses of post‐acquisition (Fu et al, 2013). Following Hossain and Javakhadze (2020) and Ding et al (2021), we also use the post‐event ROAs and the change of ROA after and before merger to measure the accounting performance, and so we make the following hypothesis:H1b Acquirers located in higher Buddhism intensity regions exhibit better accounting performance.…”

Section: Literature Review and Hypothesis Developmentmentioning

confidence: 99%

Buddhism and M&A performance: Evidence from China

Shi

2023

Accounting & Finance

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This research explores the effect of Buddhism on mergers & acquisitions (M&As) performance, using 4622 M&A transactions of Chinese public firms from 2004 to 2018. Herein, we offer sufficient evidence that the acquirers located in higher Buddhism intensity regions performed better for both short‐ and long‐term after merger. Furthermore, we show that state ownership also plays an essential role in mitigating its effect, whilst our channel analysis indicates that the source of value creation is driven by higher deal completion rates and fewer violation cases for acquiring firms. Finally, we address the endogeneity issue, and the results remain unaffected.

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Voting by mouth: media attention and environmental governance

Shi,

Yin,

2023

Environ Sci Pollut Res

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External oversight is critical to enhancing environmental protection. In this paper, we investigate the implication of media attention on corporate environmental governance during the period 2011-2021 by taking China's public companies as samples. The empirical results indicate that media attention can signi cantly and persistently amplify corporate environmental governance, and this result is stable after considering both endogeneity and a series of alternative robustness tests. Additionally, in areas with higher marketization and better rules of law environments, media attention can be better in favor of improving corporate environmental performance. Further analysis nds that media attention is favorable to corporate environmental governance through the "supervisory effect" mechanisms, including raising public awareness, improving internal management e ciency, as well as leveraging innovation to reduce environmental damage. The conclusions of this study provide empirical evidence for enhancing external supervision and corporate governance.

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Corporate media connections and merger outcomes

Cited by 19 publications

References 71 publications

News Bias in Financial Journalists’ Social Networks

News Bias in Financial Journalists’ Social Networks

Buddhism and M&A performance: Evidence from China

Voting by mouth: media attention and environmental governance

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