Media coverage and corporate risk-taking: International evidence

IF 2.9 3区 经济学 Q2 BUSINESS, FINANCE
Xin Gao , Weidong Xu , Donghui Li
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引用次数: 2

Abstract

Employing a large sample of 13,449 firms across 40 countries, we find that firms with high media coverage tend to take risky investments. We further show that this positive relation is achieved through three plausible channels, namely, the information asymmetry channel, the capital-at-risk channel, and the business strategy channel, and is enhanced in countries with strong shareholder protection and transparent information environments. Multinational analyses show that news coverage has a larger positive impact on firms with higher levels of international diversification. Domestic media and domestic institutional investors are found to enhance the positive role of media. Our main conclusions remain valid after carefully taking endogeneity issues into account and conducting various robustness tests. This study sheds new light on the real effects of media in mitigating risk-related agency conflicts.

媒体报道与企业冒险:国际证据
我们对40个国家的13449家公司进行了大样本研究,发现媒体覆盖率高的公司倾向于进行高风险投资。我们进一步表明,这种正相关关系是通过三个可能的渠道实现的,即信息不对称渠道、风险资本渠道和商业战略渠道,并且在股东保护力度强、信息环境透明的国家得到增强。跨国公司的分析表明,新闻报道对国际多元化水平较高的公司有更大的积极影响。发现国内媒体和国内机构投资者增强了媒体的积极作用。在仔细考虑内生性问题并进行各种稳健性测试后,我们的主要结论仍然有效。本研究揭示了媒体在缓解与风险相关的代理冲突中的实际作用。
本文章由计算机程序翻译,如有差异,请以英文原文为准。
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来源期刊
CiteScore
7.30
自引率
4.80%
发文量
25
审稿时长
30 days
期刊介绍: International trade, financing and investments have grown at an extremely rapid pace in recent years, and the operations of corporations have become increasingly multinationalized. Corporate executives buying and selling goods and services, and making financing and investment decisions across national boundaries, have developed policies and procedures for managing cash flows denominated in foreign currencies. These policies and procedures, and the related managerial actions of executives, change as new relevant information becomes available. The purpose of the Journal of Multinational Financial Management is to publish rigorous, original articles dealing with the management of the multinational enterprise. Theoretical, conceptual, and empirical papers providing meaningful insights into the subject areas will be considered. The following topic areas, although not exhaustive, are representative of the coverage in this Journal. • Foreign exchange risk management • International capital budgeting • Forecasting exchange rates • Foreign direct investment • Hedging strategies • Cost of capital • Managing transaction exposure • Political risk assessment • International working capital management • International financial planning • International tax management • International diversification • Transfer pricing strategies • International liability management • International mergers.
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