Bad News Is not Always Bad: The Effect of Negative Coverage on Corporate Ambidextrous Innovation

Qingqing ZHOU; Yang Zhou; Zhilin YANG; Zhiying Liu; Huiyu Liu; Linhan Wu

doi:10.5465/AMPROC.2025.11656abstract

Bad News Is not Always Bad: The Effect of Negative Coverage on Corporate Ambidextrous Innovation

Qingqing ZHOU
, Yang Zhou^*
, Zhilin YANG
, Zhiying Liu
, Huiyu Liu
, Linhan Wu

^*Corresponding author for this work

Department of Marketing

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

Abstract

While previous studies have explored the role of media in shaping corporate strategy, its impact on corporate innovation remains contentious. Drawing on reputation and agency theories, this study theoretically analyzes the impact of negative media coverage (NMC) on exploratory innovation (ERI) and exploitative innovation (EII). Using panel data from Chinese listed companies from 2011 to 2022, this study finds that NMC impedes ERI but exhibits a U-shaped relationship with EII. Moderating examination reveals that corporate giving (CG) mitigates the negative impact of NMC on ERI and flattens the U-shaped effect on EII. Further analysis reveals that larger firms and high-growth industries are less vulnerable to the adverse effects of NMC, while state-owned enterprises face stronger inhibitory impacts on ERI. Additionally, the U-shaped relationship between NMC and EII weakens in highly competitive industries. This study advances literature by clarifying the complex role of NMC and corporate social responsibility in shaping innovation outcomes.

© Academy of Management Proceedings

Original language	English
Title of host publication	Annual Meeting Proceedings
Subtitle of host publication	Philadelphia 2026
Editors	Sonia Taneja
Publisher	Academy of Management
DOIs	https://doi.org/10.5465/AMPROC.2025.11656abstract
Publication status	Published - Jul 2026
Event	86th Annual Meeting of the Academy of Management (AOM 2026) - Philadelphia, United States Duration: 31 Jul 2026 → 4 Aug 2026 https://www.aom.org/events/annual-meeting/aom-2026/

Publication series

Name	Academy of Management Proceedings
Publisher	Academy of Management
Number	1
Volume	2025
ISSN (Print)	0065-0668
ISSN (Electronic)	2151-6561

Conference

Conference	86th Annual Meeting of the Academy of Management (AOM 2026)
Abbreviated title	AOM 2026
Place	United States
City	Philadelphia
Period	31/07/26 → 4/08/26
Internet address	https://www.aom.org/events/annual-meeting/aom-2026/

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Research Unit(s) information for this publication is provided by the author(s) concerned.

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@inproceedings{071aafc3c173419cb1ce15c37fa6cb1b,

title = "Bad News Is not Always Bad: The Effect of Negative Coverage on Corporate Ambidextrous Innovation",

abstract = "While previous studies have explored the role of media in shaping corporate strategy, its impact on corporate innovation remains contentious. Drawing on reputation and agency theories, this study theoretically analyzes the impact of negative media coverage (NMC) on exploratory innovation (ERI) and exploitative innovation (EII). Using panel data from Chinese listed companies from 2011 to 2022, this study finds that NMC impedes ERI but exhibits a U-shaped relationship with EII. Moderating examination reveals that corporate giving (CG) mitigates the negative impact of NMC on ERI and flattens the U-shaped effect on EII. Further analysis reveals that larger firms and high-growth industries are less vulnerable to the adverse effects of NMC, while state-owned enterprises face stronger inhibitory impacts on ERI. Additionally, the U-shaped relationship between NMC and EII weakens in highly competitive industries. This study advances literature by clarifying the complex role of NMC and corporate social responsibility in shaping innovation outcomes. {\textcopyright} Academy of Management Proceedings",

author = "Qingqing ZHOU and Yang Zhou and Zhilin YANG and Zhiying Liu and Huiyu Liu and Linhan Wu",

note = "Research Unit(s) information for this publication is provided by the author(s) concerned.; 86th Annual Meeting of the Academy of Management (AOM 2026), AOM 2026 ; Conference date: 31-07-2026 Through 04-08-2026",

year = "2026",

month = jul,

doi = "10.5465/AMPROC.2025.11656abstract",

language = "English",

series = "Academy of Management Proceedings",

publisher = "Academy of Management",

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ZHOU, Q, Zhou, Y, YANG, Z, Liu, Z, Liu, H & Wu, L 2026, Bad News Is not Always Bad: The Effect of Negative Coverage on Corporate Ambidextrous Innovation. in S Taneja (ed.), Annual Meeting Proceedings: Philadelphia 2026. Academy of Management Proceedings, no. 1, vol. 2025, Academy of Management, 86th Annual Meeting of the Academy of Management (AOM 2026), Philadelphia, Pennsylvania, United States, 31/07/26. https://doi.org/10.5465/AMPROC.2025.11656abstract

Bad News Is not Always Bad: The Effect of Negative Coverage on Corporate Ambidextrous Innovation. / ZHOU, Qingqing; Zhou, Yang; YANG, Zhilin et al.
Annual Meeting Proceedings: Philadelphia 2026. ed. / Sonia Taneja. Academy of Management, 2026. (Academy of Management Proceedings; Vol. 2025, No. 1).

Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review

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T2 - 86th Annual Meeting of the Academy of Management (AOM 2026)

AU - ZHOU, Qingqing

AU - Zhou, Yang

AU - YANG, Zhilin

AU - Liu, Zhiying

AU - Liu, Huiyu

AU - Wu, Linhan

N1 - Research Unit(s) information for this publication is provided by the author(s) concerned.

PY - 2026/7

Y1 - 2026/7

N2 - While previous studies have explored the role of media in shaping corporate strategy, its impact on corporate innovation remains contentious. Drawing on reputation and agency theories, this study theoretically analyzes the impact of negative media coverage (NMC) on exploratory innovation (ERI) and exploitative innovation (EII). Using panel data from Chinese listed companies from 2011 to 2022, this study finds that NMC impedes ERI but exhibits a U-shaped relationship with EII. Moderating examination reveals that corporate giving (CG) mitigates the negative impact of NMC on ERI and flattens the U-shaped effect on EII. Further analysis reveals that larger firms and high-growth industries are less vulnerable to the adverse effects of NMC, while state-owned enterprises face stronger inhibitory impacts on ERI. Additionally, the U-shaped relationship between NMC and EII weakens in highly competitive industries. This study advances literature by clarifying the complex role of NMC and corporate social responsibility in shaping innovation outcomes. © Academy of Management Proceedings

AB - While previous studies have explored the role of media in shaping corporate strategy, its impact on corporate innovation remains contentious. Drawing on reputation and agency theories, this study theoretically analyzes the impact of negative media coverage (NMC) on exploratory innovation (ERI) and exploitative innovation (EII). Using panel data from Chinese listed companies from 2011 to 2022, this study finds that NMC impedes ERI but exhibits a U-shaped relationship with EII. Moderating examination reveals that corporate giving (CG) mitigates the negative impact of NMC on ERI and flattens the U-shaped effect on EII. Further analysis reveals that larger firms and high-growth industries are less vulnerable to the adverse effects of NMC, while state-owned enterprises face stronger inhibitory impacts on ERI. Additionally, the U-shaped relationship between NMC and EII weakens in highly competitive industries. This study advances literature by clarifying the complex role of NMC and corporate social responsibility in shaping innovation outcomes. © Academy of Management Proceedings

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DO - 10.5465/AMPROC.2025.11656abstract

M3 - RGC 32 - Refereed conference paper (with host publication)

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ER -

Bad News Is not Always Bad: The Effect of Negative Coverage on Corporate Ambidextrous Innovation

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