A Multilingual Analysis of Corporate Governance News
26 Pages Posted: 8 May 2016 Last revised: 22 Aug 2016
Date Written: May 4, 2016
In this study, we conduct a textual analysis of media news for a sample of Chinese ADRs and compare the topics discussed by English- and Chinese-language media outlets. Our findings suggest that a large proportion of corporate governance news articles published by Chinese media outlets appear to be overlooked by the English media. Next we investigate investors’ attention to Chinese corporate governance news. Our findings are consistent with the notion that high costs associated with searching, translating and processing foreign language news creates informational frictions for foreign investors.
Keywords: information processing, media, trading volume, corporate governance
JEL Classification: D82, G34, K42
Suggested Citation: Suggested Citation