The power of the business media: Evidence from firm‐level productivity

Mariem Khalifa; Ali Sheikhbahaei; Mohammed Aminu Sualihu

doi:10.1111/jbfa.12698

journal article Apr 12, 2023

The power of the business media: Evidence from firm‐level productivity

Mariem Khalifa Ali Sheikhbahaei Mohammed Aminu Sualihu

Journal of Business Finance & Accounting Vol. 51 No. 1-2 pp. 5-44 · Wiley

View at Publisher Save 10.1111/jbfa.12698

Abstract

AbstractWe examine the impact of media coverage on firm‐level productivity and find that firms with higher media coverage are associated with higher productivity. Using the launch of Barron's Online as a quasi‐shock to media coverage, we document that this relationship is causal. Further exploration shows that the positive media–productivity relationship is stronger for firms with weaker governance mechanisms and for those with higher levels of information asymmetry. We also identify an increase in reputational and career concerns and a reduction in managerial shirking as channels through which media coverage affects firm‐level productivity. The results are robust to alternative explanations and endogeneity concerns. Overall, our findings suggest that media coverage reduces managerial opportunism, and thus enhances resource deployment decisions.

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References

Details

Published: Apr 12, 2023
Vol/Issue: 51(1-2)
Pages: 5-44
License: View

Authors

M

Mariem Khalifa

Department of Accounting, College of Business Zayed University Dubai UAE

A

Ali Sheikhbahaei

Department of Banking and Finance, Monash Business School Monash University Melbourne Australia

M

Mohammed Aminu Sualihu

Department of Accounting, College of Business Zayed University Abu Dhabi UAE

Funding

Zayed University Award: R20075

Cite This Article

Mariem Khalifa, Ali Sheikhbahaei, Mohammed Aminu Sualihu (2023). The power of the business media: Evidence from firm‐level productivity. Journal of Business Finance & Accounting, 51(1-2), 5-44. https://doi.org/10.1111/jbfa.12698

The power of the business media: Evidence from firm‐level productivity

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