Does a Firm's Silence Drive Media Attention Away?

Abstract

This study examines the relationship between firms' willingness to share value-relevant information and media coverage. Results indicate that firms reluctant to provide such information receive less coverage, particularly from professional business media. A poor information environment limits media's ability to generate new information but not dissemination of existing information. These findings challenge the idea that audience demand dictates media coverage, emphasizing supply-side factors and revealing complex dynamics between firms and media in shaping the information environment.

Keywords: non-answers; conference calls; media coverage; non-professional business media

JEL Classification: D82, G14, G30