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.
| Original language | English |
|---|---|
| Publication status | Published - 4 Jul 2012 |
| Event | Media Ownership, Political Capture, and Stock Price Informativeness: International Evidence - Xian, China Duration: 4 Jul 2012 → 6 Jul 2012 |
Conference
| Conference | Media Ownership, Political Capture, and Stock Price Informativeness: International Evidence |
|---|---|
| Country/Territory | China |
| City | Xian |
| Period | 4/07/12 → 6/07/12 |