Political Connections and Media Slant

Posted: 2 Dec 2019

See all articles by Shijun Guo

Shijun Guo

University of Queensland

Xin Yu

University of Queensland

Robert W. Faff

University of Queensland

Date Written: July 1, 2019

Abstract

We examine the influence of political connections on media slant for a sample of Chinese listed firms. We find that firms with stronger political connections obtain more positive reports from eight major Chinese business newspapers. The association is more pronounced when firms are located in provinces with more government intervention and when the media are state-controlled (compared with market-oriented media). We further examine two explanations for the positive association between political connections and media slant. On the demand side, the firm management channel sees firms using their political connections to manage the relationship with the media for favorable reporting. On the supply side, the media intention channel has media outlets providing favorable reporting to connected firms to enhance their own relationship with the government. We find evidence supporting the firm management channel.

Keywords: Political connections, Favorable media slant, Media management, China

JEL Classification: G30; L82; M41

Suggested Citation

Guo, Shijun and Yu, Xin and Faff, Robert W., Political Connections and Media Slant (July 1, 2019). Available at SSRN: https://ssrn.com/abstract=3488492

Shijun Guo (Contact Author)

University of Queensland ( email )

St Lucia
Brisbane, Queensland 4072
Australia

Xin Yu

University of Queensland ( email )

St Lucia
Brisbane, Queensland 4072
Australia

Robert W. Faff

University of Queensland ( email )

St Lucia
Brisbane, Queensland 4072
Australia

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