Foreign media slant, foreign investors, and informativeness of earnings

Tsang，Albert1; Wang，Kun Tracy2; Zhu，Nathan Zhenghang3

2024

10.1007/s11142-023-09813-5

Review of Accounting Studies   影响因子和分区

1380-6653

1573-7136

Although foreign media outlets comprise a substantial proportion of the media covering U.S. financial markets, their characteristics and role in these financial markets have not been explored. Using a novel, manually collected dataset covering 1,126 media outlets from 48 countries, we explore whether there are systematic differences in the reporting properties of foreign and domestic media when they cover U.S. firm earnings announcements. We find that the coverage of foreign media outlets tends to exhibit a more negative slant than does the coverage of domestic media outlets. We further find that the negative slant of foreign media coverage is more pronounced for media outlets from countries that are less economically, politically, and culturally proximate to the United States. We also document that a greater amount of foreign media coverage amplifies the stock market’s reaction to earnings news, increases abnormal trading volume, and reduces information asymmetry between firms and investors. We find these effects to be stronger for firms with greater foreign ownership. Further analyses show that foreign media coverage plays a more significant role than domestic coverage in facilitating the incorporation of future earnings news into current stock prices.

Earnings announcements Foreign institutional investors Foreign media Media slant

英语

第一

ECONOMICS BUSINESS

2-s2.0-85182190033

Scopus

1.SUSTech Business School,Southern University of Science and Technology,Shenzhen,China
2.Research School of Accounting,Australian National University,Australia
3.School of Management,Zhejiang University,Hangzhou,China

Tsang，Albert,Wang，Kun Tracy,Zhu，Nathan Zhenghang. Foreign media slant, foreign investors, and informativeness of earnings[J]. Review of Accounting Studies,2024.

Tsang，Albert,Wang，Kun Tracy,&Zhu，Nathan Zhenghang.(2024).Foreign media slant, foreign investors, and informativeness of earnings.Review of Accounting Studies.

Tsang，Albert,et al."Foreign media slant, foreign investors, and informativeness of earnings".Review of Accounting Studies (2024).