Explore the vast range of titles available.

Prior research suggests that the media plays an important information intermediary role in capital markets. We investigate the role of the media in influencing firms' engagement in corporate social responsibility (CSR) activities. Using a large sample of 4396 unique firms from 42 countries over the period 2003-2012, we find strong evidence that firms engage in more CSR activities if located in countries where the media has more freedom. This relation is robust to using various proxies for media freedom, an alternative source of CSR data, and to applying the instrumental variables approach to address endogeneity. In additional analyses, we find that the positive relation between media freedom and CSR engagement is stronger for better governed firms and for larger firms. Since the media have the ability to impact reputational capital, we conclude that media freedom affects firms' incentives to engage in costly CSR activities.

This paper examines whether and how market competition affected the political bias of government-owned newspapers in China from 1981 to 2011. We measure media bias based on coverage of government mouthpiece content ( propaganda) relative to commercial content. We first find that a reform that forced newspaper exits (reduced competition) affected media bias by increasing product specialization, with some papers focusing on propaganda and others on commercial content. Second, lower-level governments produce less-biased content and launch commercial newspapers earlier, eroding higher-level governments’ political goals. Third, bottom-up competition intensifies the politico-economic trade-off, leading to product proliferation and less audience exposure to propaganda.

Recent changes in technology and the media are causing significant changes in how capital markets assimilate and respond to information. We identify important themes in the disclosure literature and use this as a framework to discuss the conference papers that appear in this volume. These papers examine how managers' disclosure practices are being affected by changes in technology, the media, and capital markets. While this work makes important progress, we discuss how continuing technological change and the emergence of new forms of media offer further opportunities for research on the role of disclosure in capital markets.

We examine the effect of media coverage on firm innovation. Using a comprehensive sample of corporate news coverage and patenting over the period from 2000 to 2012, we find a negative relation between media coverage and firm innovation. We further document the two offsetting economic mechanisms underlying the impact of media coverage on innovation: the media’s role of short-term pressure on managers relates negatively to innovation, while its role of mitigating financial constraints is positively associated with innovation. Our findings provide new insights into the effect of news coverage on firms’ long-term growth.

The authors propose a quantitative approach for describing entertainment products, in a way that allows for improving the predictive performance of consumer choice models for these products. Their approach is based on the media psychology literature, which suggests that people's consumption of entertainment products is influenced by the psychological themes featured in these products. They classify psychological themes on the basis of the \"character strengths\" taxonomy from the positive psychology literature (Peterson and Seligman 2004). They develop a natural language processing tool, guided latent Dirichlet allocation (LDA), that automatically extracts a set of features of entertainment products from their descriptions. Guided LDA is flexible enough to allow features to be informed by psychological themes while allowing other relevant dimensions to emerge. The authors apply this tool to movies and show that guided LDA features help better predict movie-watching behavior at the individual level. They find this result with both award-winning movies and blockbuster movies. They illustrate the potential of the proposed approach in pure content-based predictive models of consumer behavior, as well as in hybrid predictive models that combine content-based models with collaborative filtering. They also show that guided LDA can improve the performance of models that predict aggregate outcomes.

Mass media digitization is an unfolding phenomenon, posing novel societal opportunities and challenges that researchers are beginning to note. We build on and extend MIS research on process digitization and digital versus traditional communication media to study how and to what extent social media—one form of digital mass media—are emancipatory (i.e., permitting wide-spread participation in public discourse and surfacing of diverse perspectives) versus hegemonic (i.e., contributing to ideological control by a few). While a pressing concern to activists and scholars, systematic study of this issue has been elusive, owing partially to the complexity of the emancipation and hegemony concepts. Using a case study approach, we iteratively engaged with data on the discourse surrounding the Stop Online Piracy Act (SOPA) and source literature to identify six facets of interpretive media packages (i.e., competing social constructions of an issue) as measurable constructs pertinent to emancipation and hegemony. These facets included three structural constraints (on authorship, citation, and influence) and three content restrictions (on frames, signatures, and emotion). We investigated propositions regarding effects of social versus traditional media and lean versus rich social media on these interpretive media package facets by comparing the SOPA discourse across two lean traditional and social media (newspapers and Twitter) and two rich traditional and social media (television and YouTube). Our findings paradoxically revealed social media to be emancipatory with regard to structural constraints, but hegemonic with regard to an important content restriction (i.e., frames). Lean social media mitigated structural advantages and exacerbated content problems. These findings suggest that, as with traditional media, some inevitable evils accompany the societal benefits of social media and that mass media is having a detrimental effect on public discourse. We offer practical steps by which private and public institutions may counter this effect, theoretical implications for wider consideration of the six interpretive media package facets proposed here, and encouragement to MIS researchers to increase their efforts to compare different digitized processes so that a more comprehensive theory of the effects of different forms of digitized processes can be developed.

We investigate whether a borrower's media coverage influences the syndicated loan origination and participation decisions of informationally disadvantaged lenders, loan syndicate structures, and interest spreads. In syndicated loan deals, information asymmetries can exist between lenders that have a relationship with a borrower and less informed, nonrelationship lenders competing to serve as lead arranger on a syndicated loan, and also between lead arrangers and less informed syndicate participants. Theory suggests that the aggressiveness with which less informed lenders compete for a loan deal increases in the sentiment of public information signals about a borrower. We extend this theory to syndicated loans and hypothesize that the likelihood of less informed lenders serving as the lead arranger or joining a loan syndicate is increasing in the sentiment of media-initiated, borrower-specific articles published prior to loan origination. We find that as media sentiment increases (1) outside, nonrelationship lenders have a higher probability of originating loans; (2) syndicate participants are less likely to have a previous relationship with the borrower or lead bank; (3) lead banks retain a lower percentage of loans; and (4) loan spreads decrease.

Managers express growing concern over media coverage of corporate taxes, yet no large-sample empirical study examines this phenomenon. As a first step to fill this void, we identify factors associated with the likelihood and negative tone of media tax coverage and examine firms' tax avoidance behavior following media tax coverage. We find the likelihood of media tax coverage is greater for firms with GAAP effective tax rates below the top U.S. statutory rate of 35 percent and for firms with greater visibility. The degree of negative tone is increasing in cash tax avoidance and firm size. We also find evidence of more frequent and more negative tax coverage during economic recessions. We find no evidence that firms reduce their tax avoidance following media coverage. Although our analyses are subject to limitations, our results suggest the media may not have the same influence over corporate tax policy as other external stakeholders.

We draw on the signaling and infomediary literature to examine how media evaluations of CEO overcompensation (a negative cue associated with selfishness and greed) are affected by the presence of corporate philanthropy (a positive cue associated with altruism and generosity). In line with our theory on signal incongruence, we find that firms engaged in philanthropy receive more media disapproval when they overcompensate their CEO, but they are also more likely to decrease CEO overcompensation as a response. Our study contributes to the signaling literature by theorizing about signal incongruence and to infomediary and corporate governance research by showing that media disapproval can lead to lower executive compensation. We also reconcile two conflicting views on firm prosocial behavior by showing that, in the presence of incongruent cues, philanthropy can simultaneously enhance and damage media evaluations of firms and CEOs. Taken together, these findings shed new light on the media as agents of external corporate governance for firms and open new avenues for research on executive compensation. The online appendices are available at https://doi.org/10.1287/orsc.2018.1209 .

We investigate whether the media plays a role in corporate governance by disseminating news. Using a comprehensive data set of corporate and insider news coverage for the 2001–2012 period, we show that the media reduces insiders' future trading profits by disseminating news on prior insiders' trades available from regulatory filings. We find support for three economic mechanisms underlying the disciplining effect of news dissemination: the reduction of information asymmetry, concerns regarding litigation risk, and the impact on insiders' personal wealth and reputation. Our findings provide new insights into the real effect of news dissemination.