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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.

The impact of a mixture of positive and negative media coverage on long-run hotel survival remains unknown. This paper aims to investigate how the mixed positive and negative media coverage, namely, inconsistent media coverage, influences long-run hotel survival.

A yearly panel data set covering 792 news-reported hotels in Guangdong province of China, over the period 2010–2020, is analyzed using an inconsistency analysis framework consisting of text mining and survival analysis. The estimates of exponential models on the same observations and Cox estimates on alternative observations are used for robustness checks.

The inconsistency calculation method proposed here can measure the controversy degree well. There exists a U-shaped relationship between inconsistency of media coverage and hotel longevity, and hotel survival is significantly reduced only when the degree of inconsistency is within the range of 17.8%–53.6%. The U-shaped relationship is moderated by negative hotel image and by online media coverage on hotel operation strategy topics.

This study provides suggestions for hotel managers to use media coverage inconsistency to increase long-run hotel survival in the digital era.

To the best of the authors’ knowledge, this paper is one of the first to investigate long-run hotel survival factors from the perspective of media coverage inconsistency. It also proposes a method to calculate the degree of media coverage controversy, which helps to quantify the relationship between the degree of inconsistency and hotel survival.

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.

Using China’s key audit matters (KAMs) data, this study aims to examine whether negative press coverage alleviates boilerplate KAMs.

This study uses Levenshtein edit distance (LVD) to calculate the horizontal boilerplate of KAMs and investigates how boilerplate changes under different levels of the perceived legal risk.

The findings indicate that auditors of firms exposed to substantial negative press coverage will reduce the boilerplate of KAMs. This association is more significant for auditing firms with lower market share and client firms with higher financial distress. Additionally, the authors find that negative press coverage is more likely to alleviate the boilerplate disclosure of KAMs related to managers’ subjective estimation and material transactions and events. Furthermore, the association between negative press coverage and boilerplate KAMs varies with the source of negative news.

The findings suggest that upon exposure to negative press coverage, reducing the boilerplate of KAMs has a disclaimer effect for auditors.

The purpose of this paper is to investigate the relationships of news media coverage and the performance of initial public offerings (IPOs) in Germany. The aim is to find out how media attention, media sentiment, corporate information, and recency of news are related to the flotation performance of firms that go public.

50 IPOs that went public in Germany between January 2011 and December 2015 were investigated. In total, 3,644 German speaking articles dealing with the IPOs were manually analyzed. Hierarchical OLS regressions were performed to find out how news media variables relate with the flotation performance of German IPOs (cf. underpricing, share price percentage gain after second day of trading). It was furthermore distinguished between news media coverage six days prior to the IPO and coverage on the day of the IPO itself.

While more media attention devoted to the IPOs on the day of their flotation might lead to a share price percentage gain after the second day of trading, negativity in the news media and information about new products and products of the IPO firm might be negatively related with their flotation performance. However, information about the strategy change of the IPO firms seems to be positively related with the underpricing of IPOs. Furthermore, news media coverage on the day of the IPO itself seems to be more influential for the flotation performance with regard to negative sentiment and information about new products.

Financial communication professionals should manage media representations of IPO firms before and on the day of the IPO itself. In this vein, negative media coverage should be prevented and information about new products and products of the IPO firm should be considered with caution. Instead, talking about the strategy of the IPO firm might be advantageous for the flotation performance.

This study evolved from a lack of empirical research on the interrelationships between news media and stock market prices in communication science, particularly with regard to IPOs. The study contributes to previous research in paying attention to corporate information and the recency of news when trying to explain IPO performances. The findings of this study provide implications for strategic financial communication and the role of managing news media of firms that go public.

Given the heightened scrutiny of police by the media in the post-Ferguson era, the purpose of this paper is to test hypotheses derived from the cultivation theory regarding possible media-related effects on perceptions of police legitimacy.

A sample of 1,197 residents from a mid-size California city was surveyed. Regression analyses were conducted to examine the relative effects of media consumption and personal experience on perceptions of police legitimacy.

Partial support for the cultivation theory was found. Those who reported local TV as their most important news source saw police as more legitimate than those who reported the internet as most important. Consistent with past research, procedural justice was the strongest predictor of perceptions of police legitimacy for those recently stopped by the police. Awareness of negative media depictions of police, however, also had independent effects indicating that media consumption does impact perceptions of police legitimacy.

While a wealth of research on the relationship between procedural justice and perceptions of police legitimacy exists, no previous research has examined the role media consumption plays in shaping such perceptions.

This paper is an investigation of the volume, nature and tone of news media coverage of the federal Lifeline Program from its inception to 2018. It aims to examine whether news media coverage is correlated with significant episodes of reform in the program.

Using the ProQuest Major Dailies database, articles covering the “Lifeline Program” were analyzed. Specifically, a quantitative codebook was developed, based on the literature, and four coders were trained to systematically analyze the 124 articles that discussed the program between 1985 and 2018.

The findings suggest that reforms in the program were preceded by significantly higher volumes of media coverage; however, the analysis is unable to confirm that negative media coverage has a stronger agenda setting effect. In addition, no significant difference was found between positive and negative news stories in their use of research-based information.

This study is interdisciplinary in its ability to combine policy and journalism studies as a mechanism to understand the relationship between the two forces.

This study aims to investigate the effect of media coverage, negative media tone and the interaction between negative media tone and independent non-executive directors (INEDs) on strategic information disclosure (SD).

The authors rely on media agenda-setting theory, agency theory and a panel data set of 52 UAE non-financial listed firms from 2009 to 2016. Multivariate regressions examine the effect of media coverage and negative media tone on SD and examine the moderation of INEDs on the effect of negative media tone on SD while controlling for firm size, board size, board meeting frequency, firm profitability and leverage.

The results show that negative media tone has a negative effect on SD, and there is no association between media coverage and SD. The results show that INEDs are negatively associated with SD and have a negative moderating effect on the negative media tone–SD relationship. INEDs follow a conservative approach, encouraging less SD when their firms face negative media tone.

The authors measured media coverage and negative media tone by the number of news articles. In the robustness test, they use media tone score. They measured SD using an index that captures firm strategy dimensions. Though these measures are inherently subjective, they were used to measure variation in media coverage, media tone and SD across listed UAE non-financial firms. Mitigation of subjectivity was achieved through rigorous cross-checking measurements.

Findings assist UAE policymakers and the international business community with insights related to articulation of media to SD and INEDs’ role in moderating the effect of media on SD.

To the authors’ knowledge, this is the first study that combines media agenda-setting theory with agency theory and SD in an emerging market economy (the UAE). The study is also among the few studies that illustrate the possible role of INEDs under different media tones in emerging markets.

The purpose of this research is to understand the relationship between publicity, advertising activity and corporate sales in the context of a company’s existing reputation.

The study brings together four unique industry datasets and uses discriminant analysis and multiple regression methods to examine the relationship between existing corporate reputation, publicity, advertising activity and sales levels for major multi-national companies in the technology products sector.

Positive publicity is most important in distinguishing between firms with higher and lower sales. The effects of negative publicity and advertising are dependent on a firm’s existing reputation. For companies with weaker reputations, positive publicity in tandem with business-to-consumer (B2C) advertising is most highly associated with higher company sales. Conversely, for firms with stronger existing reputations, advertising has a significantly diminished role; positive and even negative publicity are most crucial in distinguishing between companies with high and low sales. Negative publicity can be harmful to these firms though if it is not balanced by more positive publicity. Finally, the topic of news coverage is related to sales. Generally, stories that are positive reporting on business outcomes, leadership and business future and marketing practices are most important in discriminating between firms with stronger vs weaker sales.

For this set of technology product firms, publicity and advertising are relevant for sales. Firms with higher levels of sales have both more positive and negative publicity, but the volume of positive stories is much higher. Attracting negative publicity is common for firms that achieve higher sales, but it is offset by a greater number of positive stories, an aspect that public relations efforts can influence. B2C advertising spending meanwhile matters more for firms with weaker rather than stronger existing corporate reputations. It is most effective for firms with weaker existing reputations to maximize the positive signals in the marketplace as exemplified by positive publicity and B2C advertising efforts.

Little research has examined the relationship between different forms of corporate communications and sales; this study is a rare examination using publicity, advertising spending, existing reputation and sales in a durable goods and services context where there has been a particular dearth of even basic advertising studies. Beyond understanding the relative importance of publicity v. advertising, it also uniquely focuses on the individual topics of news publicity.

This study analyzed the effects of the visibility and evaluation of universities in news media coverage on the development of their private and public third-party funds.

The paper uses the concept of media reputation to investigate the effects of news media coverage on the outcome of funding decisions by firm managers and scientific experts. Extensive news media data from 2011 to 2017, collected with manual content analysis, were combined with economic data on Swiss universities.

The results show that a more positive evaluation in the news media leads to the positive development of private, but not public, third-party funding. Surprisingly, visibility in the news media has a negative effect on private third-party funding.

The effects of media reputation are dependent on the stakeholders under review. However, this study's design does not yield evidence on direct causal effects. Further studies could, therefore, use surveys to analyze the decision-making processes of individuals regarding their relative dependency on news media consumption.

This study demonstrates that positive evaluation in the news media represents an asset for universities when striving for more private third-party funding. Public relations (PR) activities aimed at the news media, therefore, can help universities attract additional funding.

The paper shows that in a digitized media environment, the news media still represent an important source for information about scientific organizations.

The study was the first to analyze the effects of media reputation on the third-party funding of universities.