Business failure and mass media: An analysis of media exposure in the context of delisting event

Abstract

It is understood that the mass media are a pervasive force in shaping the public's perceptions. This paper incorporates agenda-setting theory to explore whether and to what extent that the mass media can signal business failure. In an analysis of news coverage relating to Chinese underperforming listed firms over the period 2006-2017, it is demonstrated that firms whose stocks are put under "special treatment" status due to consecutive annual losses experience (*ST) greater news volume and lower news sentiment relative to other firms in the quarter in which the "delisting risk warning" announcements are made. Furthermore, *ST firms which are eventually delisted have a greater volume of news than other *ST firms, but we find no evidence that the sentiment of news relates to termination of listing. Our findings offer insights into the informativeness of the mass media and their agenda-setting effects in the business failure context.

Improvement of the Quality of Business Environment Model: Case of the SME Segment

“…Beside formal institutions, informal ones such as social factors are critical for start-up and entrepreneurial activity and business environment (Welter & Smallbone 2011;Dvorsky et al, 2019;Fuentelsaz et al, 2019). Family along with media and communication environments may encourage individuals to take actions to engaging in startup activities (Park et al, 2017;Sheng & Lan, 2019). A low level of social environment reduces investment attractiveness of regions (Viturka et al, 2013).…”

Influence of media exposure and Corporate Social Responsibility compliance on customer perception: The moderating role of Firm's reputation risk

“…The reputation risk positively moderates the media exposure-customer perception results. This means that when reputation risk is high the media exposure's effect on customer perception increases; suggesting that when a sportswear firm has low reputation or high reputation risk in the industry, their media campaigns are very strong (El Ghoul et al, 2019;Etter et al, 2019;Godos-Díez et al, 2020;Sheng & Lan, 2019). Any improvement in customer perception due to media is related to the reputation risk of an organization.…”

“…In this study, there is a proposed relationship between media exposure and customer perception where by media exposure is proposed to positively affects the customer perception(Barakat, Ashby, Fenn, & Bryce, 2019;Dewi, 2019;Ma & Wong, 2018;Ruiz & García, 2019;Tuttle, 2018). In other words, media exposure strengthens the perception of the customer or improves it in favor of the business(Cohen, Hanna, & Gössling, 2018;El Ghoul, Guedhami, Nash, & Patel, 2019;Etter et al, 2018;Etter, Ravasi, & Colleoni, 2019;Sheng & Lan, 2019). As proposed earlier, reputation risk could negatively affect the customer perception of a business, it is quite possible that reputation risk reduces the relationship between the two variables(El Ghoul et al, 2019;Etter et al, 2018;Etter et al, 2019;Sheng & Lan, 2019).…”

“…In other words, media exposure strengthens the perception of the customer or improves it in favor of the business(Cohen, Hanna, & Gössling, 2018;El Ghoul, Guedhami, Nash, & Patel, 2019;Etter et al, 2018;Etter, Ravasi, & Colleoni, 2019;Sheng & Lan, 2019). As proposed earlier, reputation risk could negatively affect the customer perception of a business, it is quite possible that reputation risk reduces the relationship between the two variables(El Ghoul et al, 2019;Etter et al, 2018;Etter et al, 2019;Sheng & Lan, 2019). Hence, reputation dress can reduce or weaken the relationship between media exposure and customer perception.As this current has already established that reputation risk can work as a moderator between several relationships including those in which customer perception has been framed as the dependent variable, customer perception is an outcome of an organization's media exposure.…”

Linking firm characteristics to perceived important social factors for entrepreneurial activity

“…Both media and family environments can motivate adults to get actions towards startup activities (Brixiová & Égert, 2012;Crammond et al, 2018;Park et al, 2017;Sheng & Lan, 2019). Low levels of the social environment can reduce investment attractiveness of regions (Viturka et al, 2013).…”