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

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (no ISBN/ISSN)peer-review

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Author(s)

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Detail(s)

Original languageEnglish
Publication statusPublished - Aug 2016

Conference

Title76th Annual Meeting of the Academy of Management
PlaceUnited States
CityAnaheim
Period5 - 9 August 2016

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.

Research Area(s)

  • corporate fraud, media governance, media salience

Bibliographic 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).

Citation Format(s)

Corporate financial fraud, types of media shaming, and firm valuation. / Yiu, Daphne W.; WAN, William Piu; Tian, Xiaocong.

2016. Paper presented at 76th Annual Meeting of the Academy of Management, Anaheim, California, United States.

Research output: Conference Papers (RGC: 31A, 31B, 32, 33)32_Refereed conference paper (no ISBN/ISSN)peer-review