报告人：Albert Tsang, Associate professor, York University
In this study, we examine whether and how media coverage influences stock price sensitivity to positive versus negative earnings news disclosures. We find that media sensitivity to negative earnings news is greater than media sensitivity to positive earnings news, consistent with the higher tendency of the media to cover and disseminate negative news to investors relative to positive news. We further find that stock price sensitivity to negative (positive) earnings news is lower (higher) when firms’ media coverage surrounding earnings announcements is high. This finding suggests that greater media coverage exacerbates and attenuates the reactions of stock prices to positive and negative earnings news disclosures, respectively. The asymmetric influence of media coverage on stock price to news sensitivity is especially pronounced for firms with lower information environments measured by lower institutional ownership, fewer analyst following and smaller firm size. Results from these cross-sectional tests suggest that the effect of the media is greater when they play a more dominant information intermediary role to the firm. Overall, our study suggests that the asymmetric media coverage of negative versus good news plays a positive role in disciplining managers’ bad news withholding behaviors. Thus, we identify a new channel through which media influences firms’ information environments.
Prof. Tsang got his Ph.D. in Accounting, M.B.A., M.Sc. in Accounting and M.Sc. in Management Information System from University of Texas at Dallas, U.S.A. He has published papers on journals such as International Journal of Auditing, Journal of Business Ethics, Review of Accounting Studies, etc.