Benefits of Publicity

Because most outsiders learn about a firm from news articles written about it, firms have incentives to manage how they are covered by media so that they are presented in the most favorable light possible. Our study examines whether the composition of a firm’s board of directors affect the way the firm is covered by media. Specifically, we investigate whether a board member with media expertise enhances the firm’s ability to manage how the firm is portrayed in the news.

We define an individual with past experience in a news organization as an owner, top executive, board member, editor, journalist, … Read more