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Negative media coverage has important impacts on firm financial performance, but existing studies have inconsistent views of this relationship and lack a unified theoretical framework to explain how such impacts arise. This study aims to bridge this gap in the literature.

This study uses two sets of data encompassing publicly listed companies in Shanghai and Shenzhen stock exchanges from 2013 to 2019, which are covered by the China Stock Market and Accounting Research Database.

This study finds that the number of negative news coverages has an inverted U-shaped relationship with firm financial performance; this relationship is weakened by the proportion of shares held by institutional investors and strengthened by advertising intensity.

This study suggests that corporate executives should be aware of the potential value of a limited amount of negative news coverage and react with tolerance and caution when their companies encounter it.

This study uses two different routes provided in the elaboration likelihood model theory to fully explain the processes underlying changes in investors’ attitudes toward firms experiencing negative media coverage.

Utilising a database that distinctly classifies firm-level ESG (environmental, social and governance) news sentiment as positive or negative, the authors examine the information flow between the two types of ESG news sentiment and stock returns for 20 companies listed on the Johannesburg Stock Exchange between 2015 and 2021.

The authors use Shannonian transfer entropy to examine whether information significantly flows from ESG news sentiment to stock returns and a modified event study analysis to establish how stock prices react to changes in the two types of ESG sentiment.

Using Shannonian transfer entropy, the authors find that for the majority of the companies studied, information flows from the positive ESG news sentiment to stock returns while only a minority of the companies exhibit significant information flow from negative ESG news sentiment to returns. Furthermore, the study’s findings show significantly positive (negative) abnormal returns on the event date and beyond for both upgrades and downgrades in positive ESG news sentiment.

This study is among the first in an African context to investigate the impact of ESG news sentiment on stock market returns at high frequencies.

The purpose of this paper is to provide a systematic review of the literature examining the role of news media consumption and awareness in shaping public attitudes about police.

A comprehensive, systematic search of multiple academic databases (e.g. EBSCO Host) was undertaken, supplemented by the use of Google Scholar to search among journals indicated as having cited the articles found in the databases.

A total of 42 studies were identified that met the selection criteria for this meta-review and examined exposure to high-profile incidents involving police, awareness of negative news coverage of police, and/or consumption of specific news mediums (e.g. newspapers). Overall, research supports a relationship between negative perceptions of police and both exposure to high-profile incidents and awareness of negative coverage. Some support for the influence of consuming television news on attitudes exists, but more research is needed on the role of different news sources in shaping perceptions. Future research should also include determining causal pathways and how news about police is selected.

This is the first meta-review of the research examining how news media and attitudes about police are related. This study will provide a useful resource for those researchers wishing to continue to examine different aspects of news media consumption as a predictor of perceptions.

This study investigates the media activities of firms issuing private equity placements and seasoned equity offerings in Taiwan, as firms have incentives to manage media coverage to influence their stock prices during private equity placement.

We collect a corpus of news stories and transform the news into term sets based on the part of speech. Then, we refer to Cecchini et al. (2010) to classify the news terms into positive, negative, and usual categories. Next, we employ the SVM algorithm to perform the classification tasks and the term frequency method to perform the text mining task. In last, we use a multiple regression model to verify the hypotheses.

We determine that issuing firms in a private placement have substantially more positive news stories and fewer negative news stories than those in public offerings. Furthermore, we evidence that the media management effects of postequity issues are more active than those of preequity issues. Finally, our results demonstrate that the timing and content of financial media coverage among different equity issuance methods may be biased by firm management. According to previous studies, they may attempt to manipulate stock prices to increase the number of highly profitable insider stakeholders.

To our knowledge, this is the first study to investigate that if private placement will associate with more active media management than the public offerings. According to our results of the difference-in-means test, the public offerings market may control news coverage; however, this result is inconsistent with that of the regression results. The private placements market may also exercise media management in the “before announcement day” and “after announcement day” periods by increasing positive news and reducing negative news.

Investor relations literature reports that after an era that “the higher the stock price, the better”, currently investor relations entered into a new era where “overvaluation is perhaps as bad as undervaluation” (Laskin, 2018a, p. 19). This paper searches for evidence on whether news coverage around abnormal returns indicates that corporate communication effectively seek fair value prices.

Using data of the Portuguese market, it investigates if the news coverage and the investor relations' influence on such coverage (namely as a source of the news) are symmetrical before and after extreme abnormal positive or negative returns. This paper uses event study methodology, performs content analysis and applies statistical and econometric analyses.

The findings are consistent with the idea that companies communicate differently in face of positive and negative abnormal returns. Particularly, before the event, companies are more frequently cited as a source of the news for positive events. This indicates that companies seek to capitalize the positive impact of the favourable subsequent disclosures. After the occurrence of abnormal returns, companies are more often a source of the news for negative cases, seeking to mitigate their impact. Additionally, after negative events companies are more frequently mentioned in the news with a positive content than they are mentioned before.

The new approach of this study allows the companies' information stakeholders (namely investors and regulators) to become more informed and critical in the analysis of news coverage and its sources.

As far as the authors of the paper know, this is the first study that addresses the question of eventual asymmetric behaviour of companies’ communication in face of positive and negative abnormal returns.

The use of social networking websites by companies to disclose corporate news and by investors to collect information for investment purposes is increasing rapidly. However, the role of investors’ affective reactions to corporate disclosures on social networking websites is under-researched. This paper aims to examine how the disclosure platform (disclosing news on a company’s Facebook Web page or the corporate investor relations Web page) and news valence (positive or negative) jointly influence investors’ affective reactions to corporate news and stock price change judgments.

The authors conduct an experimental study using 364 participants from Amazon’s Mechanical Turk website as a proxy for reasonably informed investors.

Results show that the disclosure platform influences investors’ affective reactions and stock price change judgments when the corporate news is negative, but not when the corporate news is positive. In addition, investors’ affective reactions mediate the influence of the disclosure platform on investors’ stock price change judgments when the corporate news is negative rather than positive.

This paper extends the theory on affective reactions to a social networking context by showing that differences in disclosure platforms and news valence influence investors’ affective reactions to corporate news. In addition, the study’s theory and findings have significant implications for researchers, company managers and public relations specialists, capital market participants, regulators and investor education organizations and users of social networking websites.

The purpose of this study explores the effects that media coverage of corporate social responsibility (CSR) news related to primary stakeholders (e.g. customers, employees and investors) and secondary stakeholders (e.g. community) have on the market value of companies, measured as the impact generated in the positive and negative abnormal returns for those companies.

Using a sample of 195 online papers published in the most important Spanish business newspaper during 2015, the authors implement an event study and a regression analysis that confirm the importance of CSR news for corporate financial goals.

The findings show that negative CSR news related to primary stakeholders such as investors and customers generate significant abnormal returns for companies that are notably larger than the abnormal returns generated by secondary stakeholders (e.g. community). Similarly, positive news related to primary stakeholders such as employees are the only positive news that affect market reactions significantly.

The study provides an empirical analysis that clarifies how media coverage of different types of CSR news affect the market value of companies. In doing so, the paper contributes to previous literature significantly because scant research exists that has compared the differential effects of CSR news focused on primary and secondary stakeholders. The findings are discussed under the premises of the managerial perspective of stakeholder theory.

The purpose of this paper is to examine the effect of firm-level investor sentiment on a firm's share liquidity.

The authors use Bloomberg's firm-level, daily investor sentiment scores derived from firm-level news and Twitter content in a regression model to explain the variability in a firm's share liquidity.

The results indicate that improvements (deterioration) in investor sentiment derived solely from Twitter content lead to a decrease (increase) in the average firm's share liquidity. Results, although not as strong, are opposite for investor sentiment derived solely from news articles: improvements (deterioration) in news sentiment leads to an increase (decrease) in the average firm's share liquidity.

The proxy for share liquidity is the bid-ask spread, which may be an imperfect measure of liquidity. The Amihud illiquidity measure was used as an alternative proxy and yield similar results. The results have important implications for investors in assessing the determinants of share liquidity.

The sample period covers four years (2015–2018), which is determined by the availability of the Bloomberg sentiment data.

Investors increasing use of social media to express views on particular stocks and seek information that might be used in the investment decision-making process. The study links investor sentiment derived from social media (Twitter) to share liquidity.

By examining the relationship between a firm's sentiment and the firm's share liquidity, this paper advances the authors' understanding of the factors that drive a firm's share liquidity. To the authors' knowledge, this is the first study to link investor sentiment derived from firm-level news and Twitter content to a firm's share liquidity.

Based on the premises of the institutional theory, in this paper, we explore the effects that the media coverage of positive and negative Corporate Social Responsibility (CSR) news have on the stock market value of companies in diverse industries.

Using a sample of 195 online articles published in the most important Spanish business newspaper, we implement an event study and a regression analysis.

The findings show that positive and negative CSR news, usually, have significant impacts on the stock market value of companies. Specifically, the market reaction is stronger under the announcement of negative news in all industries (i.e. basic, energy, finance and goods and services), although positive news also cause significant positive stock market reactions in the finance and basic industries.

Although the media plays an indispensable role in the dialogue around CSR, much of the research focused on the role of the media on the CSR-CFP link does not consider how the industry variable can affect the abnormal stock returns derived from CSR news. This research contributes to this gap in the literature by exploring the differences that exist in the stock market reactions to CSR news based on the industry in which the companies operate.

Researchers have long been interested in understanding why and how corporate managers issue earnings guidance and the effect of such guidance on stakeholders’ (investors’ and managers’) behavior. Several recent studies have employed the experimental approach to address these issues. The purpose of this paper is to analyze and synthesize the literature on experimental studies of management earnings guidance. Consistent with the literature, I organize the synthesis to reflect (a) whether, why and how management issues guidance; (b) investors’ reactions to guidance; (c) the effect of guidance on management behavior. In addition, I provide institutional information (e.g., nature and timing of guidance) about guidance as well as provide several directions for future research. The synthesis reveals that the experimental studies have made a unique contribution to this literature by (i) providing evidence on process variables that underlie some empirical associations, (ii) directly measuring managers’ personal attributes and, (iii) closing the causality gap in the guidance literature.