Media Coverage, Real Earnings Management, and Long-Run Market Performance: Evidence from Chinese IPOs

Yu, Danning

doi:10.1007/s10690-022-09396-2

Asia-Pac Financ Markets

2023

DOI: 10.1007/s10690-022-09396-2

|View full text |Cite

Media Coverage, Real Earnings Management, and Long-Run Market Performance: Evidence from Chinese IPOs

Danning Yu

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...

Citation Types

Supporting

Mentioning

Contrasting

Year Published

2024

Publication Types

Select...

Article4

Relationship

Self Cite0

Independent4

Authors

Journals

Cited by 4 publications

References 43 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

External Governance Oversight and the IPO Process: Empirical Evidence from China

Liu

2024

Asia-Pac Financ Markets

View full text Add to dashboard Cite

This study examines the effects of political affiliations as an external governance element on various aspects of the IPO procedure in China. Within China, the significance of political connections is widely recognized as a notable external governance factor capable of exerting influence over both the IPO process. Utilizing a distinctive dataset comprising IPO information from 1856 firms in China spanning the period between 2014 and 2021, the primary objective of this research is to demonstrate that companies with political affiliations have a higher probability of experiencing underpricing, coupled with an increased likelihood of attracting investments from retail investors. Furthermore, these firms tend to attract prestigious underwriters and more underwriter subscriptions, despite having to pay higher floating costs and underwriting fees. Lastly, the study demonstrates that political connections are especially beneficial for firms during market uncertainty, such as the recent pandemic. Political connections act as monitors, reducing information asymmetry and signaling positive aspects of the firms to investors. To strengthen the main conclusions, the study conducts various robustness tests, including PSM and subsample analysis. Overall, the research adds to the existing literature on the crucial role of political connections in promoting IPO practices and reducing information asymmetry through monitoring and support.

show abstract

External Governance Oversight and the IPO Process: Empirical Evidence from China

Liu

2024

Asia-Pac Financ Markets

View full text Add to dashboard Cite

show abstract

The impact of directors’ information technology experience on the financing constraints of internet start-ups—Data mining with python on the China’s New OTC market

Xu,

Wang,

Wang

et al. 2024

PLoS ONE

View full text Add to dashboard Cite

In the era of Internet information technology, the IT background of directors plays a significant role in corporate governance. However, existing research lacks sufficient discussion on the financing constraints faced by Internet startups. This paper examines Internet entrepreneurial enterprises listed on the New Third Board as the research sample. Using content analysis coding methods and Python software for text mining, the study empirically analyzes the impact of directors’ IT backgrounds and media reports on the financing constraints of these enterprises. The results indicate the following: First, directors with IT backgrounds help reduce the financing constraints of Internet startups. The higher the directors’ proficiency in information technology, the more favorable it is for obtaining financing. Second, directors with IT backgrounds have a significant positive impact on the tone of media reports. Third, the tone of media reports reflects the spirit and development of the enterprises, serving as a mediating factor between directors’ IT backgrounds and the financing constraints of the enterprises. The findings of this study are valuable for guiding Internet startups to better leverage the IT expertise of their directors. Additionally, they provide useful insights for reducing the financing constraints faced by these startups.

show abstract

The effect of media coverage on earnings management: Evidence from Brazilian companies

Passos,

Gonçalves

2024

Rev. contab. finanç.

View full text Add to dashboard Cite

This study aims to verify the effect of media coverage on the earnings management of Brazilian listed companies. A sample of 284 Brazilian non-financial companies listed on the B3 was used, with quarterly data for the period 2011-2022. Media coverage was measured by the natural logarithm of the number of news stories released about the firms, and for earnings management, a detection model with accruals was used (Collins et al., 2017), estimated using an unbalanced panel in GMM 2SLS. The results show a negative association between media coverage and earnings management, indicating that managers tend to manage earnings less in the presence of media visibility, in order to avoid negative effects on the deviation from the real value of earnings. The research reveals that the Brazilian media acts as an external agent of governance, inducing the improvement of accounting information by monitoring management actions. Given the importance of the role played by the media, especially through the rapid dissemination of information, the results show that media coverage contributes to reducing the noise generated by earnings management. This finding could have implications for managers and the capital market, as it shows that the media is an agent that interferes, albeit indirectly, with corporate actions. Therefore, the media influences various organizations, with implications for management practices that seek to improve transparency. The study seeks to fill a gap regarding the effect of Brazilian media coverage on earnings management, shedding light on the media as an external element of corporate governance that contributes to an environment of better accounting information.

show abstract

scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.

Contact Info

customersupport@researchsolutions.com

10624 S. Eastern Ave., Ste. A-614

Henderson, NV 89052, USA

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Blog Terms and Conditions API Terms Privacy Policy Contact Cookie Preferences Do Not Sell or Share My Personal Information

Made with 💙 for researchers

Part of the Research Solutions Family.

Media Coverage, Real Earnings Management, and Long-Run Market Performance: Evidence from Chinese IPOs

Cited by 4 publications

References 43 publications

External Governance Oversight and the IPO Process: Empirical Evidence from China

External Governance Oversight and the IPO Process: Empirical Evidence from China

The impact of directors’ information technology experience on the financing constraints of internet start-ups—Data mining with python on the China’s New OTC market

The effect of media coverage on earnings management: Evidence from Brazilian companies

Contact Info

Product

Resources

About