Do Corporate Press Releases Drive Media Coverage?

51 Pages Posted: 2 Mar 2016 Last revised: 19 Feb 2020

See all articles by Nikolaos Tsileponis

Nikolaos Tsileponis

University of Bristol - School of Accounting and Finance

Konstantinos Stathopoulos

The University of Manchester - Alliance Manchester Business School

Martin Walker

University of Manchester - Manchester Business School

Date Written: December 31, 2019

Abstract

We examine the role of voluntary corporate press releases about firms’ financial performance as a stimulus for financial media coverage. We find that there is a spike of media articles on the same day and one trading day following firms’ press releases. We provide evidence that managers compete for media attention and can use voluntary press releases to increase their firms’ media coverage; a firm’s issuance of press releases attracts more media articles about the firm leading to greater abnormal returns and trading volumes. Our results are robust to controlling for firm characteristics, different model specifications as well as regular earnings announcements, which have been the focus of prior literature. We also show that our inferences are not sensitive to managers’ duty to disclose material information to investors. Collectively, our findings suggest that media coverage decisions can be influenced by a firm.

Keywords: financial press; firm-originated news; media coverage management; information environment

Suggested Citation

Tsileponis, Nikolaos and Stathopoulos, Konstantinos and Walker, Martin, Do Corporate Press Releases Drive Media Coverage? (December 31, 2019). British Accounting Review, Forthcoming, Available at SSRN: https://ssrn.com/abstract=2740045 or http://dx.doi.org/10.2139/ssrn.2740045

Nikolaos Tsileponis (Contact Author)

University of Bristol - School of Accounting and Finance ( email )

30-32 Tyndalls Park Road
The Priory Road Complex, Priory Road, Clifton
Bristol, BS8 1TU
United Kingdom

Konstantinos Stathopoulos

The University of Manchester - Alliance Manchester Business School ( email )

AMBS Building
Booth Street West
Manchester, M15 6PB
United Kingdom
+44 161 275 6863 (Phone)
+44 161 275 4023 (Fax)

HOME PAGE: http://www.research.manchester.ac.uk/portal/K.Stathopoulos.html

Martin Walker

University of Manchester - Manchester Business School ( email )

Booth Street West
Manchester, M15 6PB
United Kingdom

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