Media Platforms and Stock Performance

Abstract

Media-aware stock performance has been well recognized in recent studies. Previous research, however, focused on the content influence of the media, ignoring the manner in which the media is delivered. Based on the trust theory, this study argues that the media platforms, as media distribution vehicles and trust endorsement for news, are themselves influential on the stock market. This paper collected news data from seven Chinese mainstream media platforms and classified them into official, professional, and mass media platforms to investigate the impact of different platforms. The authors find that high official and professional media coverage predict increased abnormal returns, while high mass media coverage predicts the opposite. In addition, this paper systematically explores the mechanism of media platforms on stock performance from the perspectives of platform content, audience, and publication timeliness. The findings include that investors' attention to media platforms has a moderating effect on the stock performance, and such an effect is more salient in bear markets.

Presidential Attack Risk

“…The most common research uses content to predict the performance of stock markets. In fact, in recent years, research has burgeoned surrounding social media platforms and stock markets (Chen et al, 2021;Jin et al, 2022). While most studies have focused on the wisdom of the crowd (Bollen et al, 2011;Cheng & Yang, 2022), few have concentrated on individual perspectives (Ajjoub et al, 2020).…”

Incremental Innovation, Government Subsidies, and New Venture Growth

“…Bushee et al (2010) describe that media as an effective information medium. The media governance theory points out that the media will report some scandals or improper behaviors of listed companies (Miller, 2006), which will affect investor sentiment (Jin et al,2022), the image and social reputation of the enterprise, and ultimately encourage the enterprise to improve its internal organizational structure and urge the enterprise to fulfill its social responsibilities. Since start-ups do not need to disclose annual reports and essential information regularly like listed companies, and the opportunities for media coverage are relatively small.…”

Valuing and Risk Analysis for Supply Chain Management

“…One may instead consider textual information as a complement to numerical information by yielding timely messages without any delay. However, discovering and quantifying variables of interest from a large number of textual messages are essential tasks for decision makers, who have a hard time when facing this problem, since it is complicated, indeed infeasible, to manually perform exhaustive text perusal, even in a moderately sized corpus (Bao & Datta, 2014;Jin et al, 2022). Furthermore, compared to professional institutions (i.e., banks and investment companies), individual investors have little knowledge and resources to digest financial narratives (i.e., accounting jargon and diverse accounting measures and estimations) to reach a reliable judgment.…”