We examine the effect of media coverage on firm innovation. Using a comprehensive sample of corporate news coverage and patenting over the period from 2000 to 2012, we find a negative relation between media coverage and firm innovation. We further document the two offsetting economic mechanisms underlying the impact of media coverage on innovation: the media’s role of short-term pressure on managers relates negatively to innovation, while its role of mitigating financial constraints is positively associated with innovation. Our findings provide new insights into the effect of news coverage on firms’ long-term growth.
Does the media spotlight burn or spur innovation?
Published 2020 in Review of accounting studies
ABSTRACT
PUBLICATION RECORD
- Publication year
2020
- Venue
Review of accounting studies
- Publication date
2020-07-18
- Fields of study
Business, Economics
- Identifiers
- External record
- Source metadata
Semantic Scholar
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