Media exposure and corporate reputation

Luis Cabral

Research in Economics, 2016, vol. 70, issue 4, 735-740

Abstract: The media typically provide greater coverage of large and reputed corporations. I provide a theory of firm reputation dynamics based on the positive feedback effects resulting form the correlation between firm size and media coverage. I show that, in equilibrium, the dynamics of firm reputation are highly asymmetric: slow increases in reputation are followed by sudden drops. Moreover, endogenous media coverage implies greater dispersion of firm performance. Finally, I consider implications for corporate media strategy, namely the trade-off between “no news is good news” and “there is no such thing as bad publicity.”

Keywords: Media; Reputation; Firm performance (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:reecon:v:70:y:2016:i:4:p:735-740

DOI: 10.1016/j.rie.2016.07.004

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