WHY MEDIA SLANT? Media coverage of mergers and acquisitions in China

Abstract

Using a text analysis of Chinese newspaper articles covering 1321 proposed mergers during 2008-2018, this study proposes attribution theory to examine how the media is susceptible to stereotype bias. Evidence reveals that the media pays considerable attention to and exhibits favourable sentiments toward overseas-experienced acquirers, which is found only in non-state-owned enterprises. Further analyses on the amplifying effect of stereotype bias show that the media slant more positively on large-scale overseas experiences. Results indicate that the media is biased, referring to impression migration from merger and acquisition experience.

How do co‐shareholding networks affect negative media coverage? Evidence from China

“…Although effective media coverage can make the capital market much more efficient by alleviating information asymmetries and increasing firm exposure to market investors (Bushee et al, 2010; Fang & Peress, 2009; Guldiken et al, 2017; Oliver et al, 2023), studies have also shown that media coverage is somewhat biased and slanted by firms. Current studies suggest that positive media coverage can be used by firms as an important tool to manage the image of the focal firm (Baloria & Heese, 2018; Guo et al, 2021; Gurun & Butler, 2012; Wu & Yang, 2022).…”

“…the image of the focal firm (Baloria & Heese, 2018;Guo et al, 2021;Gurun & Butler, 2012;Wu & Yang, 2022).…”