Media Coverage and Firm Valuation: Evidence from China
Drawing on both a managerial discipline perspective and an information intermediary perspective, we explore how media coverage of a firm’s controlling shareholder influences firm valuation in corporate China. Using 366 listed family firms in China from 2003 to 2006, we find that firms in which contr...
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2014
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sg-smu-ink.soa_research-21882020-01-14T06:24:55Z Media Coverage and Firm Valuation: Evidence from China WANG, Jiwei YE, Kangtao Drawing on both a managerial discipline perspective and an information intermediary perspective, we explore how media coverage of a firm’s controlling shareholder influences firm valuation in corporate China. Using 366 listed family firms in China from 2003 to 2006, we find that firms in which controlling shareholders receive more neutral media reports enjoy higher valuation, whereas negative media reports on controlling shareholders impose adverse effects on firm valuation. Interestingly, favorable media coverage of the controlling shareholders does not enhance firm value. Further analyses reveal that ownership structure and audit quality moderate the relationship between media coverage and firm valuation. Our study complements the emerging literature on the monitoring role of the media on the stock markets. 2014-01-01T08:00:00Z text application/pdf https://ink.library.smu.edu.sg/soa_research/1189 info:doi/10.1007/s10551-014-2055-5 https://ink.library.smu.edu.sg/context/soa_research/article/2188/viewcontent/SSRN_id2274048.pdf http://creativecommons.org/licenses/by-nc-nd/4.0/ Research Collection School Of Accountancy eng Institutional Knowledge at Singapore Management University Accounting Asian Studies Corporate Finance |
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Accounting Asian Studies Corporate Finance WANG, Jiwei YE, Kangtao Media Coverage and Firm Valuation: Evidence from China |
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Drawing on both a managerial discipline perspective and an information intermediary perspective, we explore how media coverage of a firm’s controlling shareholder influences firm valuation in corporate China. Using 366 listed family firms in China from 2003 to 2006, we find that firms in which controlling shareholders receive more neutral media reports enjoy higher valuation, whereas negative media reports on controlling shareholders impose adverse effects on firm valuation. Interestingly, favorable media coverage of the controlling shareholders does not enhance firm value. Further analyses reveal that ownership structure and audit quality moderate the relationship between media coverage and firm valuation. Our study complements the emerging literature on the monitoring role of the media on the stock markets. |
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text |
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WANG, Jiwei YE, Kangtao |
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WANG, Jiwei YE, Kangtao |
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WANG, Jiwei |
title |
Media Coverage and Firm Valuation: Evidence from China |
title_short |
Media Coverage and Firm Valuation: Evidence from China |
title_full |
Media Coverage and Firm Valuation: Evidence from China |
title_fullStr |
Media Coverage and Firm Valuation: Evidence from China |
title_full_unstemmed |
Media Coverage and Firm Valuation: Evidence from China |
title_sort |
media coverage and firm valuation: evidence from china |
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Institutional Knowledge at Singapore Management University |
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2014 |
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https://ink.library.smu.edu.sg/soa_research/1189 https://ink.library.smu.edu.sg/context/soa_research/article/2188/viewcontent/SSRN_id2274048.pdf |
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