 Does media spotlight really burn innovation? Evidence from ChinaGuoqiang Hu, Jin-hui Luo, Liang Han and Tianbao Liu Pacific-Basin Finance Journal, 2024, vol. 83, issue C Abstract: This study investigates whether and how media coverage influences corporate innovation in China as an emerging economy. In sharp contrast to evidence from developed markets (e.g., U.S.), this study demonstrates that media coverage is positively associated with corporate innovation in China. The results hold following a series of endogeneity and robustness tests. We also demonstrate that media coverage largely has a positive influence through improving the information environment and external governance and alleviating financial constraints for innovative firms. Furthermore, the effects of media coverage are more pronounced for firms located in less developed regions of China. Finally, we find that the effects of media coverage are driven by nonofficial rather than official media coverage, and positive (negative) coverage facilitates (impedes) corporate innovation. Overall, this study contributes to the literature by confirming that media coverage may spur rather than burn corporate innovation in emerging markets. Keywords: Media coverage; Corporate innovation; Information intermediary; Corporate governance; Financial constraint; China (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:83:y:2024:i:c:s0927538x23003116 DOI: 10.1016/j.pacfin.2023.102240 Access Statistics for this article Pacific-Basin Finance Journal is currently edited by K. Chan and S. Ghon Rhee More articles in Pacific-Basin Finance Journal from Elsevier |
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