State Ownership, Media Capture, and Stock Price Efficiency : International Evidence

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

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Original languageEnglish
Publication statusPublished - 4 Jul 2012

Conference

TitleMedia Ownership, Political Capture, and Stock Price Informativeness: International Evidence
PlaceChina
CityXian
Period4 - 6 July 2012

Abstract

State-owned media are subject to capture by those in power. This paper examines the impact of media ownership on stock price efficiency/informativeness in a sample of firms from 60 countries. We find that as the extent of state media ownership increases, stock price synchronicity increases and the ability of stock prices to predict future earnings decreases. We also find that the impact of state media ownership on reducing stock price informativeness is more pronounced in countries with stronger non-media institutions. Our results suggest that the political institution of media ownership matters to the information environment of stock markets.

Citation Format(s)

State Ownership, Media Capture, and Stock Price Efficiency : International Evidence. / KIM, J B; ZHANG, Hao; LI, L C; TIAN, G L.

2012. Paper presented at Media Ownership, Political Capture, and Stock Price Informativeness: International Evidence, Xian, China.

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