Media attention and corporate risk-taking: Evidence from China

Using a dataset of 2678 publicly listed Chinese companies covering 2007 to 2019, we investigate the effect of media attention on corporate risk-taking. The findings reveal a significant positive correlation between media attention and corporate risk-taking with information asymmetry and quality of i...

Full description

Saved in:
Bibliographic Details
Published in:International review of economics & finance 2024-06, Vol.93, p.1459-1482
Main Authors: Yu, Chengyong, Song, Anyue, Yu, Fangzhou
Format: Article
Language:English
Subjects:
Corporate risk-taking
Information transparency
Media attention
Public opinion pressure
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:Using a dataset of 2678 publicly listed Chinese companies covering 2007 to 2019, we investigate the effect of media attention on corporate risk-taking. The findings reveal a significant positive correlation between media attention and corporate risk-taking with information asymmetry and quality of information disclosure acting as intermediaries. Further analysis indicates that media attention amplifies corporate risk-taking under certain circumstances, including analyst coverage, the percentage of shares held by major shareholders, board size, executive compensation, and independent directors or separation of the chairperson and CEO roles. Our study provides valuable insights for effectively addressing media-related challenges nationally and in corporations.
ISSN:1059-0560
1873-8036
DOI:10.1016/j.iref.2024.04.020