Does the media spotlight burn or spur innovation?

• 成果类型: Article
• 署名作者: Dai, Lili; Shen, Rui; Zhang, Bohui
• 署名单位: University of New South Wales Sydney; The Chinese University of Hong Kong, Shenzhen; The Chinese University of Hong Kong, Shenzhen
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-020-09553-w
• 发表日期: 2021
• 页码: 343-390
• 关键词: research-and-development; knowledge spillovers; Investment decisions; corporate governance; resource-allocation; AGENCY COSTS; MARKET; INFORMATION; news; COMMUNICATION

摘要

We examine the effect of media coverage on firm innovation. Using a comprehensive sample of corporate news coverage and patenting over the period from 2000 to 2012, we find a negative relation between media coverage and firm innovation. We further document the two offsetting economic mechanisms underlying the impact of media coverage on innovation: the media's role of short-term pressure on managers relates negatively to innovation, while its role of mitigating financial constraints is positively associated with innovation. Our findings provide new insights into the effect of news coverage on firms' long-term growth.