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Media Attention and Selective Managerial Bad News Hoarding

Authors: Yangyang Chen; C.S. Agnes Cheng; Shuo Li; Jingran Zhao;

Media Attention and Selective Managerial Bad News Hoarding

Abstract

This paper investigates whether media attention impacts the extent to which managers hoard bad news in general and whether the effect applies to conspicuous news, such as earnings news. We find that greater media attention escalates managerial bad news hoarding; however, such an effect does not apply to bad earnings news. These findings imply that managers selectively hoard bad news that is not as regulated and as conspicuous as earnings news. In the cross-sectional analyses, we find that typical corporate governance mechanisms are not effective in mitigating bad news hoarding; rather, we find that the effect of media attention on bad news hoarding is amplified when management is more short-term oriented.

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
1
Average
Average
Average
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