Media coverage and the cost of equity capital around the world
基于38个国家数据，发现媒体报道增加会降低股权资本成本，且该效应受新闻自由度和媒体可信度影响，对信息不对称严重或治理较差的企业更显著。
Abstract Using a sample of 38 countries, our study is the first to show on a global scale that the relation between media coverage and implied cost of equity capital ( ICOC ) is negative and both statistically and economically significant. On average, a one‐unit increase in media coverage (approximately two news articles) leads to a 0.38% decrease in ICOC . This effect hinges on the degree of press freedom in the reporting country and the credibility of specific media outlets. The effect is more pronounced in countries with less developed capital markets but greater US media penetration. Furthermore, firms with higher information asymmetry or weaker corporate governance experience a stronger impact of media coverage on ICOC . Positive news coverage encourages firms to invest more and use less debt, while negative news coverage has opposite influences. Finally, the release of media news is associated with reduced option‐implied volatility.