Press freedom and operational losses: The monitoring role of the media

Berlinger, Edina; Keresztúri, Judit Lilla; Lublóy, Ágnes; Tamásné, Zsuzsanna Vőneki

doi:10.1016/j.intfin.2021.101496

Cited by 12 publications

(5 citation statements)

References 37 publications

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“…Observing the financial penalty in terms of USD assigned to each firm engaging in a reported corporate misconduct, a negative and statistically significant at 10% impact towards firms’ CARs is recorded as well. According to Berlinger et al (2022) [ 19 ], this result has two important implications: i) investors reaction to the financial penalty information associated with the reported misconduct would be even stronger towards firms’ CARs, and ii) having the information about the penalty imposed publicly available is an indicator itself of the freedom of speech in the country. The controls for firm size, leverage, revenue growth, and firm foreign exposure are as expected: larger firms contribute to higher CARs, which is evident from the fact that all firms in our sample are NYSE and NASDAQ listed firms; highly leveraged firms are affected more negatively than less leveraged firms; and firms with higher revenue growth show better performance than firms with lower revenue growth in terms of CARs.…”

Section: Resultsmentioning

confidence: 99%

“…To observe the statistical impact of the reported corporate misconduct events on the CARs the estimations evolve around the following model (e.g., Berlinger et al, 2022 [ 19 ]; Ichev, 2018 [ 24 ]; Wagner et al, 2018 [ 18 ]; Donadelli et al, 2016b [ 11 ]; Kamstra et al, 2003 [ 25 ]; Brown & Warner, 1985 [ 26 ]): Where CAR i , t is the cumulative abnormal return of firm i on event window t , γ 0 is the regression intercept, CM i , t is the type of reported corporate misconduct undertaken by a specific firm, and Level i , t is a dummy variable denoting reported corporate misconducts done on a corporation level, and by C-level individuals otherwise. Location i , t is a dummy variable equaling 1 if reported corporate misconducts take place in the home market and 0, otherwise.…”

Section: Methodsmentioning

confidence: 99%

“…More specifically, about 80% of the articles collected come from "The New York Times", and the rest is from "The Wall Street Journal" and "The USA Today" combined. As noted by Berlinger et al (2022) [19], it is important to stress that not all corporate misconducts become public. Journalists can be more concentrated on large scandals, specific industries, and specific types of misconducts.…”

Section: Datamentioning

confidence: 99%

See 2 more Smart Citations

Reported corporate misconducts: The impact on the financial markets

Ichev

2023

PLoS ONE

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This study empirically examines how reported corporate misconducts affect the stock returns of US firms. As the reported misconducts are broadcasted in the newspaper outlets, the cumulative abnormal return (CAR) is -4.1%. Involvement in a reported corporate misconduct gets punished by market participants especially when the act of reported misconduct is blamed on the level of the corporation rather than in involvement of a specific individual, when reported misconducts take place in the home market, and when the linguistic tone used in the newspaper article is negative. Financial penalties imposed, firm size, leverage, revenue growth, and the level of firm foreign exposure are found to have significant impact on the returns during the period of observation. The results suggest that investors recognize the importance to penalize firms in the financial markets when firms act unethically.

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Section: Resultsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Datamentioning

confidence: 99%

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Reported corporate misconducts: The impact on the financial markets

Ichev

2023

PLoS ONE

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“…In contrast, macroeconomists have previously addressed sustainability and climate risk (Naffa et al, 2021;Németh-Durkó, 2020). Several studies examine the relationship between environmental (E), social (S), and governance (G) factors (Berlinger et al, 2022;Primecz et al, 2019). Financial institutions also face ecological, societal, and governmental challenges that require rethinking their investment and risk management practices (Gyura, 2020;Mihálovits and Tapaszti, 2018;Walker et al, 2020).…”

Section: Introductionmentioning

confidence: 99%

Does ESG Improve Crisis Resilience? Empirical Evidence of Global Emerging Equity Markets during the Covid-19 Crisis

Naffa

Dudás²

2023

Period. Polytech. Soc. Man. Sci.

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We examine the role of Environmental, Social, and Governance (ESG) factors in explaining the crisis resilience of 1031 global emerging market (GEM) equities during the Covid-19 crisis downturn of Q1 2020. We use linear and quantile regressions (QR) and find a statistically significant negative relationship between a firm's ESG management score and crisis resilience as proxied by stock maximal drawdown. Our results suggest that companies with better ESG management were less crisis resilient, a finding consistent with agency-theory-based explanations found in the literature. Results are robust across all OLS and QR models.

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“…Without the right and opportunity to express one's opinion, there would be no possibility to express one's ideas and demands; without an adequate market of opinions, society would be in a situation where "all the people would be in a state of mourning"; without the competition of various opinions in the public forum, the state would inevitably lead to a monolithic and authoritarian situation. In short, the value of freedom of the press can only be obtained through the competition in the marketplace of opinions, and thus, it has become the form through which the value of freedom of the press must be realized [7][8][9][10].…”

Section: Introductionmentioning

confidence: 99%

A Study on the Method of Press Freedom Value Assessment Based on Artificial Neural Network

Zhu

2022

Wireless Communications and Mobile Computing

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Freedom of the press embodies an increasingly important role in modern democratic society, and people pay more and more attention to the value of freedom of press. The value of freedom of press has been elaborated from the basic concept, right attributes, and role functions of freedom of press, which are the basis for the existence of the value of freedom of the press and the jurisprudential basis for strengthening its legal construction. Freedom of press is a right extended from the freedom of speech and publication and is the application of freedom of speech and publication in news communication activities. Freedom of the press in the modern sense is considered an institutional right, both a fundamental right and a political right. As the role of press freedom in the process of modern democratic society becomes more and more prominent, the conflict between its value and other social values becomes more and more obvious. In such a context, this study introduces BP neural network technology into the assessment of press freedom value, expecting that a set of assessment method models with press freedom value as the core can be constructed. In order to achieve this goal, the core problem is how to use BP neural network technology to automatically evaluate the value of freedom of the press. A web crawler is used to crawl news from various online sources and the news are scored and evaluated by the system to present the most valuable news first to the readers. A dataset of 1440 data samples was created to be used in the experiments. The proposed GRU with multifeature fusion method has a higher accuracy and lower error rate as compared to LSTM, linear regression, and random forest-based model.

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Press freedom and operational losses: The monitoring role of the media

Cited by 12 publications

References 37 publications

Reported corporate misconducts: The impact on the financial markets

Reported corporate misconducts: The impact on the financial markets

Does ESG Improve Crisis Resilience? Empirical Evidence of Global Emerging Equity Markets during the Covid-19 Crisis

A Study on the Method of Press Freedom Value Assessment Based on Artificial Neural Network

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