The liquidity effect of media coverage: International evidence11We would like to thank the members of the UE-UD Teaching and Research Team in Corporate Finance and Asset pricing (TRT-CFAP) for their helpful comments. We thank Bohui Zhang for sharing some of the data. Part of this research was conducted while Tung Lam Dang was a visiting scholar at the Kelley School of Business, Indiana University. This research is funded by Vietnam National Foundation for Science and Technology Development (NAFOSTED) under grant number 502.02–2020.313

Thi Hong Hanh Huynh and Tung Lam Dang

Pacific-Basin Finance Journal, 2025, vol. 93, issue C

Abstract: We examine the media coverage–stock liquidity relation and its variation across country-level institutional environments. We utilize a comprehensive data set of firm-level media coverage across 44 countries for the period 2000–2020, and identify that media coverage is positively associated with stock liquidity. Additionally, the positive association between media coverage and stock liquidity is more pronounced among firms with less transparent information environment and lower firm visibility. Our cross-country analysis suggests that the liquidity-enhancing effect of media coverage is stronger for firms in countries with weaker institutional characteristics. These findings further elucidate the role of the media in international stock markets.

Keywords: Media coverage; Stock liquidity; Information environment; Firm visibility; Institutional characteristics (search for similar items in EconPapers)
JEL-codes: G14 G15 G32 G34 (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:93:y:2025:i:c:s0927538x25001891

DOI: 10.1016/j.pacfin.2025.102852

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