The Role of the Business Press as an Information Intermediary
<heading id="h1" level="1" implicit="yes" format="display">ABSTRACT</heading>This paper investigates whether the business press serves as an information intermediary. The press potentially shapes firms' information environments by packaging and disseminating information, as well as by creating new information through journalism activities. We find that greater press coverage reduces information asymmetry (i.e., lower spreads and greater depth) around earnings announcements, with broad dissemination of information having a bigger impact than the quantity or quality of press-generated information. These results are robust to controlling for firm-initiated disclosures, market reactions to the announcement, and other information intermediaries. Our findings suggest that the press helps reduce information problems around earnings announcements. Copyright (c), University of Chicago on behalf of the Accounting Research Center, 2009.
Year of publication: |
2010
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Authors: | BUSHEE, BRIAN J. ; CORE, JOHN E. ; GUAY, WAYNE ; HAMM, SOPHIA J.W. |
Published in: |
Journal of Accounting Research. - Wiley Blackwell, ISSN 0021-8456. - Vol. 48.2010, 1, p. 1-19
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Publisher: |
Wiley Blackwell |
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