The Impact Of Negative Media Coverage On Corporate Performance

The arrival of the fifth information technology revolution has made people's lives more intelligent,convenient,and efficient.This change has had a profound impact on the development of the media and has also brought about earth-shaking changes in the social environment the company is facing.In addition to traditional television,radio,newspapers,and magazines,the form of the media has spawned online news,Weibo,WeChat and other forms.At the same time,we-media of enterprises have received more and more attention as a new thing.Through the establishment of self-media platforms,companies can directly communicate with consumers,investors,media and other stakeholders at a lower cost.We-media can also play an important role in marketing,recruitment,crisis public relations and other aspects.With the help of the Internet,the delivery of media information has become more timely and highspeed,and its audience has been huge.Its influence on businesses has become more apparent.As a communicator of information,the media can effectively alleviate the problem of information asymmetry between the enterprise and its stakeholders,and deliver various news of the enterprise to consumers and investors.Due to the scarcity of attention,people tend to focus on events that bring more stimuli.Therefore,compared with positive or neutral reports,negative news reports can arouse the attention of stakeholders and urge them to make actions that are unfavorable to the company,which in turn affects corporate performance.In response to this situation,if companies can take defensive impression management measures and respond directly through their own media,they can weaken this negative effect.This article uses the "listed company's negative news popularity rating list" in the "Securities Market News Hot List" published by Panorama Network as the data source.Through empirical analysis of the 4643 negative news of 1408 companies,it is found that the negative reports of the media will affect corporate performance.First,the more negative reports a company has within a year,the lower the performance of the company in the year.Second,if the coverage of negative reports is wide and highly influential,it can promote enterprises to actively improve internal management and weaken the impact of negative reports.It even enhances corporate performance.Finally,when the media makes open questions about the company,it can effectively mitigate the adverse effects of negative reports by responding appropriately to staying silent.In addition,the paper also found that negative reports involving laws or references to business operations have a greater impact on business performance.Based on the above research,this paper believes that enterprises should attach importance to the construction and maintenance of self-media platforms and have their own voice platform so that they can effectively respond to negative media reports and reduce the negative consequences of negative reports.