Supply chain spillover effect of media attention to customers from the perspective of real earnings management

Yuchuan Lin and Xinpeng Xing

Finance Research Letters, 2024, vol. 63, issue C

Abstract: This paper investigates how media attention to customers affects the supplier's information environment from the perspective of real earnings management. Our empirical results for 2010–2020 reveal a negative association between media attention to customers and the supplier's real earnings management. Causality is established through the instrumental variable two-stage least squares approach. Cross-sectional tests further illustrate that more external supervision and internal constraints are two potential channels for this observed relationship. Overall, our findings emphasize that the media, as a crucial information intermediary, significantly affects the behavior of companies in the supply chain.

Keywords: Media attention; Supply chain spillover; Real earnings management (search for similar items in EconPapers)
JEL-codes: G30 G32 M41 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003465

DOI: 10.1016/j.frl.2024.105316

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