Media attention and firm value: International evidence

Abstract

We investigate the relation between media attention and firm value and whether this relation varies across different institutional and information environments. Using a comprehensive dataset of global media from 41 countries for the period between 2000 and 2010, we find that media coverage is positively associated with firm value. In addition, we find support for two channels through which the value effect of media coverage operates: the information asymmetry reduction channel and the monitoring channel. Importantly, we document that the positive association between media coverage and firm value is stronger for firms in countries with weak institutional characteristics or less transparent information environments. Our findings provide additional insights into the role of the media in international equity markets.

ESG performance and corporate value: Analysis from the stakeholders’ perspective

“…Nur (2021) studies the impact of social media on the value of oil and gas firms, and finds that corporate social media has a positive impact on corporate value, but positive emotions on social media have no impact on the value of oil and gas firms. Using extensive media data from 41 nations between 2000 and 2010, Dang et al (2021) discover that media coverage has a positive correlation with business value and contributes by lowering information asymmetry and playing a regulatory role. The market worth of the corporate stock will be impacted, in the opinion of Lopez-Tenorio and Romero (2020), by investors' incorporation of the appraisal of advertising decisions into stock prices.…”

Can retail investors induce corporate green innovation? -Evidence from Baidu Search Index

“…In terms of informal environment regulation, many scholars have discovered the positive roles of the media ( Jia et al., 2016 ; Tang and Tang, 2016 ; Dang et al., 2021 ), the public ( Pan et al., 2021 ; Zhao et al., 2022 ), ENGOs ( Tian et al., 2016 ; Li et al., 2018 ; Tu et al., 2019 ), etc. in corporate governance and regional environmental governance.…”

“…Specific to corporate environmental governance, existing literature has discussed the impact of environmental regulation on pollution emissions ( He and Pan, 2017 ; Shapiro and Walker, 2018 ), green investment ( Liao and Shi, 2018 ; Falcone, 2020 ), green innovation, etc. In terms of informal environment regulation, many scholars have discovered the positive roles of the media ( Jia et al., 2016 ; Tang and Tang, 2016 ; Dang et al., 2021 ), the public ( Pan et al., 2021 ; Zhao et al., 2022 ), ENGOs ( Tian et al., 2016 ; Li et al., 2018 ; Tu et al., 2019 ), etc., in corporate governance and regional environmental governance. However, little literature has discussed the impact of investor attention at the firm level.…”

Non‐Investor Institutions' Site Visits and Corporate Social Responsibility*

“…At the same time, non-investor institutions, particularly the media, have also been found in previous studies to affect financial decisions through their impact on investors' attention. For example, media coverage brings ignored stocks into investors' attention, which, in turn, enhances firms' valuation in financial markets (Liu et al 2014;Dang et al 2021). 2 The media also complements other forms of contractual arrangements and monitoring mechanisms to enhance corporate governance (An et al 2020;Di Giuli and Laux 2022).…”

“…2014; Dang et al . 2021). The media also complements other forms of contractual arrangements and monitoring mechanisms to enhance corporate governance (An et al .…”