Media coverage, social trust and corporate financing efficiency

Qian Chen

International Review of Economics & Finance, 2024, vol. 96, issue PA

Abstract: The increasing influence of media coverage on corporate financial outcomes has become a critical area of study; however, the intricate relationships among media reporting, social trust, and corporate financing efficiency remain underexplored. This study examines how different types of media coverage impact corporate financing efficiency, while considering the moderating role of social trust. We employ two-way fixed-effects and moderating effects models to analyze these relationships using data from A-share listed companies in China from 2004 to 2022. The findings reveal that positive and neutral media coverage significantly enhances corporate financing efficiency, with positive coverage exhibiting a stronger effect. In contrast, negative media coverage substantially diminishes financing efficiency. Notably, social trust amplifies the impact of all types of media coverage, intensifying both positive and negative effects. We also find that state-owned enterprises are more sensitive to media coverage than non-state-owned counterparts. These results contribute to the understanding of information dissemination in financial markets and highlight the importance of social context in shaping corporate financial outcomes. Our study offers valuable insights for developing corporate communication strategies and targeted policymaking, emphasizing the need for proactive media management and consideration of social trust in financial environments. Future research could explore these dynamics in diverse cultural and economic settings to further elucidate the complex interplay between media, social trust, and corporate finance.

Keywords: Media coverage; Social trust; Information dissemination; State-owned enterprises; Financing efficiency (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1059056024005690
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:reveco:v:96:y:2024:i:pa:s1059056024005690

DOI: 10.1016/j.iref.2024.103577

Access Statistics for this article

International Review of Economics & Finance is currently edited by H. Beladi and C. Chen

More articles in International Review of Economics & Finance from Elsevier
Bibliographic data for series maintained by Catherine Liu ().