The Governance Effect of the Media's News Dissemination Role: Evidence from Insider Trading

• 成果类型: Article
• 署名作者: Dai, Lili; Parwada, Jerry T.; Zhang, Bohui
• 署名单位: Australian National University; University of New South Wales Sydney
• 刊物名称: JOURNAL OF ACCOUNTING RESEARCH
• ISSN/ISSBN: 0021-8456
• DOI: 10.1111/1475-679X.12073
• 发表日期: 2015
• 页码: 331-366
• 关键词: executive-compensation; information asymmetry; corporate governance; Securities litigation; business press; stock returns; trades; equity; MARKET; DISCLOSURES

摘要

We investigate whether the media plays a role in corporate governance by disseminating news. Using a comprehensive data set of corporate and insider news coverage for the 2001-2012 period, we show that the media reduces insiders' future trading profits by disseminating news on prior insiders' trades available from regulatory filings. We find support for three economic mechanisms underlying the disciplining effect of news dissemination: the reduction of information asymmetry, concerns regarding litigation risk, and the impact on insiders' personal wealth and reputation. Our findings provide new insights into the real effect of news dissemination.