Local versus non-local effects of Chinese media and post-earnings announcement drift

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalpeer-review

6 Scopus Citations
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Original languageEnglish
Pages (from-to)82-92
Journal / PublicationJournal of Banking and Finance
Online published9 May 2019
Publication statusPublished - Sep 2019


Taking advantage of the institutional difference in capture between local and non-local media in China, we examined the association between media capture and post-earnings announcement drift (PEAD). Using both portfolio and regression analyses, we found that, for the same firms, non-local media coverage is negatively associated with PEAD; however, there is no association between local media coverage and PEAD, except for non-state-owned firms. Given that in China, non-local media are less captured or more independent than local media, the negative association observed for non-local media coverage can be interpreted as an indication that media independence plays a role in reducing PEAD or improving informational efficiency in the stock market.

Research Area(s)

  • Local versus non-local Chinese media, Media capture, PEAD