Negative Media Coverage Research Articles

11.O. Scientific session: Mental Health Among Sexual and Gender Minority Populations in Diverse Structural Stigma Environments

Abstract Research conducted across numerous countries finds that sexual minority (e.g., lesbian, gay, and bisexual [LGB]) and gender minority (e.g., transgender [T]) individuals represent high-risk populations for poor mental health and suicidality. These disparities are believed to be a consequence of a stigmatizing environment and sexual and gender minority individuals’ disproportionate exposure to stigma-based stress compared to cisgender (i.e., non-transgender) heterosexuals. Stigma occurs at multiple levels to compromise LGBT individuals’ health. At the structural level, stigma manifests as unjust laws, policies, and cultural norms that deny, or fail to protect, the equal rights of LGBT individuals. At the interpersonal level, stigma manifests as discrimination in social interactions, social exclusion, and outright victimization. At the individual level, stigma can tax LGBT individuals’ coping resources by requiring costly behavioral strategies such as concealment of one’s LGBT identity. In this workshop, four studies from different regional environment with varying degree of structural stigma will be presented, i.e., the USA, Switzerland, Rwanda, and Kenya. They resent novel findings on the processes and mechanism underlying LGBT populations increased risk of mental health and links between stigma experiences at different levels. Dr. Clark will present a study of how negative news media coverage influence suicidality among LGBT young adults in the USA using intensive longitudinal assessments. Dr. Pfister will present findings from in-depth interviews concerning suicidality with individuals representing a wide variety of sexual and gender minority identities in Switzerland. Dr. van der Star will present a study exploring how structural stigma environments are linked to interpersonal and individuals level stigma experiences in sexual minorities representing different generations of LGBT populations. Dr. Stojanovski will present data from surveys and interviews of LGBT populations in Kenya and Rwanda focusing on experiences of discrimination and mental health. Key messages • Negative media reporting, discrimination, and barriers to health care can influence mental health and suicidality among LGBT individuals. • Identity concealment may represent a mechanism through which sexual minorities navigate structurally stigmatizing climates.

Corporate hypocrisy and ESG rating divergence

AbstractWe draw upon impression management theory and cognitive dissonance theory to examine whether or not corporate hypocrisy triggers substantial environmental, social, and governance (ESG) rating divergence and to further investigate the influence channels of cognitive dissonance and impression management. In addition, our study explores the moderating role of media coverage with different emotional biases in shaping the relationship between corporate hypocrisy and ESG rating divergence. By utilizing a comprehensive dataset comprising 3562 Chinese listed companies and 25,898 firm‐year observations from 2010 to 2022, findings reveal that hypocritical firms exhibit significantly large ESG rating divergence. In particular, these firms induce cognitive dissonance among rating agencies, resulting in rating disparities, which are further magnified when using impression management through the selective disclosure of negative information or symbolic promotion of positive information. Furthermore, positive media coverage weakens the positive association between corporate hypocrisy and ESG rating divergence, whereas negative media coverage strengthens this relationship. Lastly, we find that the impact of corporate hypocrisy on ESG rating divergence is more pronounced for companies with higher average ESG scores, lower long‐term charitable involvement, and lower information opacity. These findings withstand various sensitivity tests utilizing alternative measures for rating divergence and corporate hypocrisy, as well as different sample compositions. Our conclusions remain robust even after addressing endogeneity concerns using a two‐stage least squares regression model.

Public Communication Strategy in the Protest of Garbage Collector Workers

Background: Public perception is vital for government trust and communication. Specific Background: Protests by waste collectors in Sidoarjo impacted the government's image due to controversial waste management fees. Knowledge Gap: Few studies explore the role of government communication in shaping public perception during local policy protests. Aims: This study analyzes the Sidoarjo Communication Office's efforts to maintain a positive image post-protests. Results: The office's inadequate response, especially its failure to engage protestors, worsened negative media coverage. Novelty: The study underscores the importance of transparent crisis communication. Implications: Local governments must strengthen communication strategies to manage public sentiment and maintain credibility during crises. Highlights : Transparent communication prevents negative public sentiment. Lack of engagement worsens media narratives. Robust strategies are needed to maintain government credibility. Keywords: public perception, crisis communication, waste management, local government, Sidoarjo protests

Do firms adjust their payout policy to public perception of their social irresponsibility?

Perception of social irresponsibility from negative media coverage may affect a firm’s payout in two opposite ways. Firms may lower dividends in anticipation of greater financial constraints or pay higher dividends to signal that potential damage to their reputation and future cash flows is expected to be limited. Using data from RepRisk for a sample of US firms, we find compelling evidence supporting the second outcome, i.e., firms perceived as socially irresponsible pay higher dividends. This result remains valid for different payout measures and after controlling for endogeneity using instrumental variables, entropy balancing, and a difference-in-differences approach. Furthermore, the relationship is stronger for high-growth firms, consistent with their greater needs for external finance. The signaling motive is further supported by the stronger valuation effect of dividends for firms perceived as socially irresponsible, as well as the subsequent decrease in the perception of their irresponsibility and higher sales growth. Overall, the results suggest that firms use dividend policy to mitigate the potential damage due to the perception of their social irresponsibility.

The impact of media coverage on the ESG performance of heavily polluting enterprises in China

Based on panel data from 2011 to 2021 encompassing 390 listed enterprises in China, we investigate the potential influence of media coverage on the Environmental, Social, and Governance (ESG) performance of heavy-polluting enterprises. The study discerns that positive media coverage significantly contributes to an enhanced ESG performance among heavy-polluting enterprises, particularly those in eastern and western China and those entrenched within highly competitive industries. Positive media coverage predominantly amplifies these enterprises’ environmental and social performance dimensions, while intriguingly, negative media coverage unexpectedly positively impacts their environmental performance. Green total factor productivity and green innovation emerge as crucial facilitators in bolstering the relationship between positive media coverage and the ESG performance of these enterprises. Our research findings provide valuable insights into understanding enterprise ESG behavior and the role of media coverage.

Media coverage, social trust and corporate financing efficiency

The increasing influence of media coverage on corporate financial outcomes has become a critical area of study; however, the intricate relationships among media reporting, social trust, and corporate financing efficiency remain underexplored. This study examines how different types of media coverage impact corporate financing efficiency, while considering the moderating role of social trust. We employ two-way fixed-effects and moderating effects models to analyze these relationships using data from A-share listed companies in China from 2004 to 2022. The findings reveal that positive and neutral media coverage significantly enhances corporate financing efficiency, with positive coverage exhibiting a stronger effect. In contrast, negative media coverage substantially diminishes financing efficiency. Notably, social trust amplifies the impact of all types of media coverage, intensifying both positive and negative effects. We also find that state-owned enterprises are more sensitive to media coverage than non-state-owned counterparts. These results contribute to the understanding of information dissemination in financial markets and highlight the importance of social context in shaping corporate financial outcomes. Our study offers valuable insights for developing corporate communication strategies and targeted policymaking, emphasizing the need for proactive media management and consideration of social trust in financial environments. Future research could explore these dynamics in diverse cultural and economic settings to further elucidate the complex interplay between media, social trust, and corporate finance.

Epidemic in the time of the COVID-19 pandemic: News media framing of the MMR vaccination controversy in Serbia

Rising vaccine hesitancy is often related to negative vaccination media coverage. It is generally accepted that the media played a great role in spreading the MMR (measles, mumps, and rubella) childhood vaccination scare first in the UK and then worldwide. During the COVID-19 pandemic, the MMR vaccination rate dropped further in some countries. This paper examines the Serbian news media framing of the MMR vaccination controversy in the period 2019–2023 (periods of declining MMR vaccination rate, rising COVID-19 vaccine hesitancy and the 2023 measles outbreaks). Furthermore, the paper questions whether the COVID-19 pandemic influenced the MMR vaccine narrative in the newspapers. For this reason, quality content analysis of the press in combination with framing approaches (diagnostic–prognostic–motivational framing tasks and responsibility framing) were used. In total, 122 articles dealing with the MMR vaccine and measles epidemics were analysed. According to the press, the most significant cause of the declining MMR rate is anti-vaccination campaigns and conspiracy theories by the “anti-vax lobby” (diagnostic frames). The pandemic was the other significant cause for the intake drop. Achieving herd immunity through vaccine uptake is offered as the best solution (prognostic frames). Finally, MMR vaccination campaigns and penalties for non-compliant parents and vaccine refusers are proposed as calls to action (motivational frames). During this period, the press did not publish any “sensational anti-vax stories”. Considering the low MMR vaccine numbers in Serbia in this period, positive media messages did not have a significant influence on improving the vaccination rate. Thus, I suggest that Serbian parents distrust vaccination information presented by the dominant news, including the advice of health experts.

Stakeholder engagement and nonprofit organizations' (NPOs) accountability: a social media-based study of the Australian 2019/2020 bushfire crisis

Purpose This study aims to examine the impact of stakeholder engagement on accountability, within nonprofit organizations (NPOs). Given the pivotal role NPOs play in disaster management and community welfare, it is crucial to gain an understanding of the obligations of NPOs, in terms of their disaster responses and accountability. Design/methodology/approach Using a case-study approach, the investigation features a content analysis of social media comments regarding the Australian Red Cross’ (ARC) funds’ allocation during the 2019/2020 bushfires, followed by a similar analysis of ARC's reports. Inspired by Carnegie et al.'s (2021) definition of accounting as a social science, this study uses dialogic theory and a transformative participatory framework, to evaluate how interactive stakeholder engagement influenced accountability strategies used by the NPO, to ensure its sustainable development. Findings The findings reveal that there was a significant increase in stakeholder engagement on social media, following negative media coverage, with participants voicing concerns over ARC’s method of funds’ allocation, delays in funds distribution and seemingly excessive administrative costs. ARC addressed these concerns by issuing Bushfire Reports, and conducting online Q&A sessions, in a bid to establish transparency. This study emphasizes how dialogic accounting can challenge accounting's limited scope – one that often overlooks ecological concerns and social justice. Originality/value This study uses the perspective of dialogic accounting theory to explore the relationship between stakeholder engagement on social media, and NPO accountability. It demonstrates how robust stakeholder engagement can challenge NPOs to establish accountability, thereby bridging the information gap between themselves and the public. The use of dialogic accounting theory allows the study to shift from the traditional focus of accounting research, which is the financial objectives of powerful entities, to the voices of the marginalized, the stakeholders, who are impacted by NPO decisions, and, in doing so, it highlights the potential for NPOs to foster accountability, and so advance sustainable development initiatives.

How to drive heavily polluting companies to fulfill environmental responsibility? The synergy between environmental regulation and digital media coverage

This paper addresses the question of how environmental regulation and digital media coverage, as formal and informal external monitoring mechanisms, affect corporate environmental responsibility fulfillment. Using the data of Shanghai and Shenzhen A-share listed companies in China's heavily polluting industries, this study showed that both environmental regulation and digital media coverage significantly improve responsive and strategic environmental responsibility fulfillment. After distinguishing the media tone, it was found that positive digital media coverage promotes the fulfillment of both responsive and strategic environmental responsibilities. In contrast, negative digital media coverage only stimulates the fulfillment of responsive environmental responsibility, which reflected an asymmetrical effect of media tone. Further, the hierarchy of governance amplifies the role of environmental regulation in triggering the fulfillment of responsive environmental responsibility but weakens its value to strategic environmental responsibility. Inconsistent with our predictions, the relationship between digital media coverage and corporate environmental responsibility fulfillment could not be significantly moderated by Confucian culture. In addition, environmental regulation and digital media coverage only existed in companies with separate chairperson and manager positions, which indicated that an excellent internal governance environment is a prerequisite for external monitoring mechanisms to play a role in environmental governance. This study enriches the literature on how to drive responsive and strategic environmental responsibility by uncovering an external governance effect of environmental regulation and digital media coverage on the fulfillment of corporate environmental responsibility, and provides inspiration for multiple environmental governance actors to promote the construction of ecological civilization collaboratively.

Media Coverage of Corporate Social Irresponsibility and Firm value: The Moderating Role of CSR Contracting

ABSTRACT This study investigates the role of CSR contracting in the relationship between negative media coverage of corporate social irresponsibility (CSiR) and firm value. By analyzing firms from 44 countries spanning the period 2003–2016, we find that media coverage of CSiR motivates firms to employ CSR contracting as a means of restoring their reputation, which in turn, leads to increased levels of CSR engagement and higher firm value. These findings align with theoretical arguments suggesting that CSR contracting can serve as an effective mechanism for improving a firm’s CSR reputation, thus enabling them to remedy damage caused by media coverage of CSiR and boost firm value.

How Negative Media Coverage Impacts Platform Governance: Evidence from Facebook, Twitter, and YouTube

ABSTRACT Social media companies wield considerable power over what people can say and do online, with consequences for freedom of expression and participation in digital culture. Yet we still know little about the factors that shape these companies’ policy decisions. Drawing on data collected from mainstream English-language news sources between 2005-2021 and on a novel dataset of policy documents from the Platform Governance Archive (PGA), we investigate the extent to which policy change at Facebook, Twitter, and YouTube is responsive to negative news coverage. We find that sustained negative coverage significantly predicts changes to platforms’ user policies, highlighting the role of public pressure in shaping the governance of online platforms.

Negative impact of Ponzi Schemes on Crypto-market

Ponzi schemes have had a profoundly negative impact on the cryptocurrency market, eroding investor confidence, attracting stringent regulatory scrutiny, and contributing to significant market volatility. High-profile scams such as BitConnect have led to substantial financial losses, fostering skepticism towards new and legitimate cryptocurrency projects. The increased regulatory scrutiny resulting from these schemes has led to stricter regulations, potentially stifling innovation and growth within the market. Additionally, the negative media coverage associated with Ponzi schemes perpetuates the perception that the cryptomarket is rife with fraud, deterring mainstream adoption and fostering a biased public view. This paper explores the multifaceted negative impacts of Ponzi schemes on the cryptomarket, highlighting their role in undermining trust, instigating legal repercussions, and causing market instability. The findings underscore the need for enhanced regulatory frameworks and investor education to mitigate the risks associated with Ponzi schemes and restore confidence in the burgeoning field of cryptocurrency.

The influence of media scrutiny on firms' strategic eschewal of lobbying

AbstractResearch SummaryLobbying allows firms to influence the government to potentially limit firms' costs during product recall crises. However, such lobbying can elicit scrutiny from the media if the lobbying gives the impression that firms wish to save costs at the expense of safety, thereby appearing hypocritical. We theorize that when faced with negative media coverage of product recalls or recall‐related lobbying, firms strategically eschew lobbying to limit further media scrutiny and its associated negative consequences. We test our hypotheses using the US auto industry's lobbying from 2008 to 2022. We provide further depth to our examination of strategic eschewal through 15 supplemental interviews of lobbyists about how the media influences firms' lobbying decisions.Managerial SummaryCompanies may resort to lobbying in efforts to reduce costs related to product recall crises, but such controversial lobbying may also tarnish their image. When confronted with negative media coverage of product recalls, or recall‐related lobbying, companies are more likely to strategically refrain from lobbying to minimize additional, unwanted media spotlight and its associated negative repercussions. Managers should be mindful that even if lobbying may help limit the costs of recalls, it could also cause potential reputational harm. Thus, it is vitally important that managers pay attention to the reputational cues from the media, which can help them determine when lobbying may be problematic and allow them to preemptively refrain from such lobbying.

Voted in, standing out: Public response to immigrants' political accession

AbstractHow do dominant‐group natives react to immigrants' political integration? We argue that ethnic minority immigrants winning political office makes natives feel threatened, triggering animosity. We test this dynamic across the 2010–2019 UK general elections, using hate crime police records, public opinion data, and text data from over 500,000 regional and local newspaper articles. While past work has not established a causal relationship between minorities' political power gains and dominant‐group animosity, we identify natives' hostile reactions with a regression discontinuity design that leverages close election results between immigrant‐origin ethnic minority and dominant‐group candidates. We find that minority victories increase hate crimes by 67%, exclusionary attitudes by 66%, and negative media coverage of immigrant groups by 110%. Consistent with power threat and social identity theories, these findings demonstrate a strong and widespread negative reaction—encompassing a violence‐prone fringe and the mass public—against ethnic minority immigrants' integration into majority settings.

Integrated reporting quality and negative ESG media coverage: Empirical evidence from South Africa

AbstractThis study draws upon media agenda‐setting theory to investigate the relationship between negative media coverage around environmental, social, and governance (ESG) issues and the quality of integrated reporting (IR). In particular, we examine the top 100 South African listed companies in the 2013–2018 timeframe for 317 firm‐year observations. Our results reveal that IR quality is positively related to negative ESG media coverage. Thus, a company exposed to more media pressure issues higher‐quality IR consistent with its need to face scrutiny and potential reputational damage and to restore or maintain its legitimacy. Results are robust to different measures of negative ESG media coverage, controlling for ESG disclosures, and are confirmed by analyses aimed at addressing endogeneity (instrumental variable approach, firm‐fixed effects, and matched samples). Subsample analyses show that financial sector reputational concerns do not impact our results. Additional tests show no long‐term effects of negative media coverage on IR quality and that sustainability embeddedness alleviates a company's response to negative ESG news in terms of enhanced reporting.

Impact of sentiment tendency of media coverage on corporate green total factor productivity: The moderating role of environmental uncertainty

In the context of China's carbon neutrality goal and increasing environmental responsibilities, this study examines the impact of media sentiment on Corporate Green Total Factor Productivity (GTFP), especially considering environmental uncertainty. Utilizing data from the CNRDS financial news database and employing the non-radial SBM-ML index to assess GTFP, the research explores how positive, neutral, and negative media coverage influences corporate sustainability behaviors. Results indicate that positive media coverage significantly enhances GTFP during corporate growth and maturation phases by improving public perception and investor confidence. In contrast, negative media coverage tends to reduce GTFP, particularly under conditions of high environmental uncertainty, highlighting the challenges during vulnerable periods. This study contributes to understanding the nuanced effects of media sentiment on corporate sustainability practices and underscores the importance of managing media relations strategically according to corporate lifecycle stages and environmental contexts to optimize sustainability outcomes. The findings offer valuable insights for businesses to align their media strategies with sustainability goals and for policymakers to develop regulations that harness media influence to support corporate environmental accountability. By strategically managing media narratives and fostering a supportive policy environment, corporations can leverage the power of media to drive their sustainability agendas and contribute to the achievement of national and global environmental targets.

The green effects of competition: administrative monopoly regulation and green innovation

In this study, we select A-share listed companies spanning from 2012 to 2022 as our sample. We utilize fair competition review system as a quasi-natural experiment to investigate the relationship between administrative monopoly regulation and green innovation. The results show that the administrative monopoly regulation is positively correlated with green innovation. The executives' environmental attention is the mechanism for both. Further analysis indicates that the promotional effect of administrative monopoly regulation on green innovation is more significant in firms that have been subjected to highly negative media coverage, firms located in regions with strong government environmental attention, heavily polluting firms, and state-owned firms. Our findings suggest that adequate market competition served as a significant stimulus for green innovation.

Negative Media Tone and Leverage Adjustments

This paper examines how negative publicity influences firms’ capital structure decision. We find that firms exhibit faster adjustment of capital structure toward the target level after more negative media coverage, advocating the monitoring role of negative media sentiment on corporate behaviors. Further, our finding is significantly stronger for non-chaebol firms. Additional analyses show that the monitoring role is stronger when firms are more scrutinized by outsiders and have better corporate governance. Overall, this paper shows evidence that negative media sentiment could play an effective role in monitoring firms’ capital structure and correcting their inefficiencies.

Board skill diversity and corporate environmental responsibility: the moderating effects of formal and informal pressures

Purpose This study aims to investigate the impact of board skill diversity (BSD) on corporate environmental responsibility (CER). In addition, this study explores the moderating effects of formal regulatory pressure and informal media pressure. Design/methodology/approach This study uses Chinese high polluting companies as the sample and uses regression analysis. Robustness checks, including instrumental variable regression, Heckman two-stage model and propensity score matching method, are performed to test the robustness of the results. Findings The findings suggest that BSD significantly improves CER performance. Both formal regulatory pressure and informal media pressure strengthen the positive impact of BSD on CER. Further channel analyses reveal that BSD improves CER performance by promoting corporate proenvironmental behaviors rather than by restricting environmental violations; skill diversity of executive directors has a more significant effect on CER than that of independent directors. Finally, the moderating effect of regulatory pressure is only significant after the implementation of the Environmental Protection Law, and the moderating effect of media pressure mainly concentrates on negative media coverage. Practical implications The involvement of directors with more diverse skills is essential to improve corporate proenvironmental behaviors. Companies should select qualified directors with different skills to further improve their performance on environmental protection and sustainable development. Social implications Regulators and standard-setters should develop efficient guidelines on corporate board governance to enhance the positive role of companies in environmental and sustainable development. Originality/value This study broadens the research on the determinants of CER by examining the influence of BSD on CER and the moderating roles of various stakeholder pressures, thereby providing a deeper understanding of corporate environmental performance and sustainable development.

Negative Media Coverage and Corporate ESG Performance: Evidence from China

Using Chinese A-share listed companies from 2011 to 2020 as a research sample, this paper examines the relationship between negative media coverage and corporate ESG performance using a two-way fixed-effects model. It is found that, first, negative media coverage can effectively promote corporate ESG performance. Second, the mediation mechanism study shows that negative media coverage positively promotes corporate ESG performance by increasing the degree of corporate financing constraints and information asymmetry and prompting corporations to change their ESG governance level. Third, the results of the heterogeneity test find that the positive relationship between negative media coverage and corporate ESG performance is more pronounced among firms without executives with overseas backgrounds, and the positive relationship between the two is more significant after the promulgation of China’s Code of Governance for Listed Companies in 2018. Fourth, further discussion revealed that negative media coverage has the strongest promotion effect on the performance of corporate environmental governance, followed by social governance performance, and lastly, corporate governance performance. The research in this paper contributes to an in-depth understanding of the impact of negative media coverage on corporate ESG performance and provides empirical evidence to facilitate policy formulation related to the role of media monitoring and to fully utilize the media’s role in corporate ESG governance.