Empirical Study On The Impact Of Media Coverage To Business Performance

With the development of the open market economy,the media coverage started to play an important role both in the public political field and corporate governance.When the public received these reports,enterprises would have the risk of declining market value,regulatory investigation and legal proceedings.At the same time,the reputation of enterprises will be damaged,thus affecting the enterprises' future management and financing.In recent years,the relationship between media coverage and business performance has become a hot spot of research at home and abroad.A growing number of studies have shown that media coverage will affect business performance significantly.And the purpose of this research is verifying how media coverage impacts business performance by studying public companies in the food and medical industry.Moreover,the ripple effect of the media coverage within the industry is the research extension.Based on the literature review and theoretical analysis,this research first defines the basic concepts.That is,measure media coverage by negatives reports,and measure business performance by financial performance.And then this research points out that media coverage influences business performance by three ways,including operation,finance and corporate governance.Among them,this research mainly focuses on management and finance that are directly affect financial performance.In the part of the empirical analysis,this research collects media coverage and financial performance data for public companies in the food and medical industry between 2004 and 2015(12 years in total).Next,put forward the hypothesis in four aspects:(1)Whether media coverage has an impact on business performance;(2)Whether the number of media coverage has an impact on business performance;(3)How media coverage impacts business performance;(4)Whether media coverage has ripple effect within the industry.Through the theoretical and empirical analysis of the current situation and relevant data,the results indicate that negative reports has a significant negative impact on the business performance.As for the influence mechanism,operation,finance and corporate governance are three divided ways.Among them,the operation and financial approach result in the decrease of business performance,but corporate governance approach leads to the recovery of business performance in the future.Additionally,negative reports has ripple effect within the industry,that means enterprises who are never have negative reports also will be influenced by the negative reports happened in the industry which they are in.At the end part of the thesis,it points out the deficiency of this research and further research directions.Some concrete suggestion have been proposed,from the perspective of media,enterprise and government.