Business failure and mass media: An analysis of media exposure in the context of delisting event
Author(s):
Abstract:
It is understood that the mass media are a pervasive force in shaping the public's perceptions. This paper incorporatesagenda-setting theory to explore whether and to what extent that the mass media can signal business failure. In ananalysis of news coverage relating to Chinese underperforming listed firms over the period 2006–2017, it is demonstratedthat firms whose stocks are put under “special treatment” status due to consecutive annual losses experience(*ST) greater news volume and lower news sentiment relative to other firms in the quarter in which the“delisting risk warning” announcements are made. Furthermore, *ST firms which are eventually delisted have agreater volume of news than other *ST firms, but we find no evidence that the sentiment of news relates to terminationof listing. Our findings offer insights into the informativeness of the mass media and their agenda-settingeffects in the business failure context.
Keywords:
Language:
English
Published:
Media Management Journal, Volume:6 Issue: 40, 2018
Page:
104
https://www.magiran.com/p1922601