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Political Relations and Media Coverage

초록

영어

In this article, we find that poor bilateral political relations between the US and other countries negatively influence US media dissemination toward non-US firms with American Depositary Receipts (ADRs). We also show that US media negativity has downward pressure on ADR firms’ home market prices and such negative impact is reduced during the year when political relations are poor—an indication that investors react to real media bias. We conclude the first study by showing that negative US media coverage leads to a higher likelihood of ADR firms terminating their ADRs.

목차

Abstract
 1. Introduction
 2. Hypothesis
  2.1. Hypothesis
  2.2. Media Coverage and Stock Performance
  2.3. Cross-(de)listing
 3. Data and Sample
  3.1. Sample (American Depositary Receipt)
  3.2. Variables
 4. Main results
  4.1. Baseline findings
  4.2. Endogeneity tests
 5. Additional Tests
  5.1. Placebo Tests
  5.2. Country Popularity Score
  5.3. Return Impact
  5.4. ADR Termination
  5.5. Robustness Test
 6. Conclusion
 References

저자정보

  • Thomas Ruf School of Banking and Finance, University of New South Wales
  • Jun Myung Song School of Banking and Finance, University of New South Wales
  • Bohui Zhang School of Banking and Finance, University of New South Wales

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  • 10,900원

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