Abstract:This study examines the effects of media co-coverage-a phenomenon where multiple firms are simultaneously mentioned in the same news article-on investors' perceived relatedness between the co-covered firms. Using the setting of information transfers between two co-covered firms during earnings announcements, I find evidence consistent with co-coverage increasing the firms' perceived relatedness. Specifically, the announcement return of the co-covered peer negatively predicts the announcement return of the foca… Show more
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