Corporate financial fraud, types of media shaming, and firm valuation

Daphne W. Yiu; William Piu WAN; Xiaocong Tian

Corporate financial fraud, types of media shaming, and firm valuation

Daphne W. Yiu
, William Piu WAN
, Xiaocong Tian

Department of Management

Research output: Conference Papers › RGC 32 - Refereed conference paper (without host publication) › peer-review

Abstract

The media plays an increasingly important role in corporate governance. We study the effect of media shaming on firm valuation in the context of corporate financial fraud. Using data of 312 corporate fraudulent cases of Chinese listed firms for the period 2000 to 2012, we find that media framing has differential effects on firm valuation with reintegrative shaming having positive effect on firm value while disintegrative shaming exerting negative valuation on the fraud firm. In addition, our findings indicate that such effects are amplified by media salience and prior stakeholders’ sentiment toward the firm. Through examining the different types of media shaming, our study underscores both the differentiating retributive and rehabilitative roles played by the media in governing firms, thus enriching the media governance literature further.

Original language	English
Publication status	Published - Aug 2016
Event	76th Annual Meeting of the Academy of Management - Anaheim, United States Duration: 5 Aug 2016 → 9 Aug 2016 http://aom.org/Events/2016-Annual-Meeting-of-the-Academy-of-Management.aspx http://my.aom.org/ProgramDocs/2016/pdf/AOM_2016_Annual_Meeting_Program.pdf http://aom.org/Meetings/Past-Meetings/

Conference

Conference	76th Annual Meeting of the Academy of Management
Abbreviated title	2016 AOM Annual Meeting
Place	United States
City	Anaheim
Period	5/08/16 → 9/08/16
Internet address	http://aom.org/Events/2016-Annual-Meeting-of-the-Academy-of-Management.aspx http://my.aom.org/ProgramDocs/2016/pdf/AOM_2016_Annual_Meeting_Program.pdf http://aom.org/Meetings/Past-Meetings/

Bibliographical note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

Research Keywords

corporate fraud
media governance
media salience

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title = "Corporate financial fraud, types of media shaming, and firm valuation",

abstract = "The media plays an increasingly important role in corporate governance. We study the effect of media shaming on firm valuation in the context of corporate financial fraud. Using data of 312 corporate fraudulent cases of Chinese listed firms for the period 2000 to 2012, we find that media framing has differential effects on firm valuation with reintegrative shaming having positive effect on firm value while disintegrative shaming exerting negative valuation on the fraud firm. In addition, our findings indicate that such effects are amplified by media salience and prior stakeholders{\textquoteright} sentiment toward the firm. Through examining the different types of media shaming, our study underscores both the differentiating retributive and rehabilitative roles played by the media in governing firms, thus enriching the media governance literature further.",

keywords = "corporate fraud, media governance, media salience",

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note = "Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).; 76th Annual Meeting of the Academy of Management, 2016 AOM Annual Meeting ; Conference date: 05-08-2016 Through 09-08-2016",

year = "2016",

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TY - CONF

T1 - Corporate financial fraud, types of media shaming, and firm valuation

AU - Yiu, Daphne W.

AU - WAN, William Piu

AU - Tian, Xiaocong

N1 - Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).

PY - 2016/8

Y1 - 2016/8

N2 - The media plays an increasingly important role in corporate governance. We study the effect of media shaming on firm valuation in the context of corporate financial fraud. Using data of 312 corporate fraudulent cases of Chinese listed firms for the period 2000 to 2012, we find that media framing has differential effects on firm valuation with reintegrative shaming having positive effect on firm value while disintegrative shaming exerting negative valuation on the fraud firm. In addition, our findings indicate that such effects are amplified by media salience and prior stakeholders’ sentiment toward the firm. Through examining the different types of media shaming, our study underscores both the differentiating retributive and rehabilitative roles played by the media in governing firms, thus enriching the media governance literature further.

AB - The media plays an increasingly important role in corporate governance. We study the effect of media shaming on firm valuation in the context of corporate financial fraud. Using data of 312 corporate fraudulent cases of Chinese listed firms for the period 2000 to 2012, we find that media framing has differential effects on firm valuation with reintegrative shaming having positive effect on firm value while disintegrative shaming exerting negative valuation on the fraud firm. In addition, our findings indicate that such effects are amplified by media salience and prior stakeholders’ sentiment toward the firm. Through examining the different types of media shaming, our study underscores both the differentiating retributive and rehabilitative roles played by the media in governing firms, thus enriching the media governance literature further.

KW - corporate fraud

KW - media governance

KW - media salience

M3 - RGC 32 - Refereed conference paper (without host publication)

T2 - 76th Annual Meeting of the Academy of Management

Y2 - 5 August 2016 through 9 August 2016

ER -

Corporate financial fraud, types of media shaming, and firm valuation

Abstract

Conference

Bibliographical note

Research Keywords

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