The power of the business media: evidence from firm-level productivity

Mariem Khalifa, Ali Sheikhbahaei, Mohammed Aminu Sualihu

Research output: Contribution to journalArticleResearchpeer-review

3 Citations (Scopus)

Abstract

We 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.

Original languageEnglish
Pages (from-to)5-44
Number of pages40
JournalJournal of Business Finance and Accounting
Volume51
Issue number1-2
DOIs
Publication statusPublished - Jan 2024

Keywords

  • CEO reputation
  • corporate governance
  • information asymmetry
  • media coverage
  • total factor productivity

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