News Media Coverage and Corporate Leverage Adjustments

We examine the impact of the media on firms' leverage adjustments. Using a comprehensive sample of global news across 33 countries, we find that greater news coverage and more positive news sentiment are associated with greater leverage adjustment speeds. This finding is consistent with the argument that media coverage and content help lower the cost of firms' adjustment toward target leverage. We further find evidence supporting two mechanisms through which the news media affects leverage adjustments: information dissemination and monitoring. Overall, our results are consistent with the dynamic trade-off theory of capital structure

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Year of publication:	2019
Authors:	Dang, Tung Lam
Other Persons:	Dang, Viet Anh (contributor) ; Moshirian, Fariborz (contributor) ; Nguyen, Lily (contributor) ; Zhang, Bohui (contributor)
Publisher:	[2019]: [S.l.] : SSRN
Subject:	Mediale Berichterstattung \| Media coverage \| Kapitalstruktur \| Capital structure \| Kommunikationsmedien \| Communication media \| Informationsverbreitung \| Information dissemination

Extent:	1 Online-Ressource (90 p)
Type of publication:	Book / Working Paper
Language:	English
Notes:	In: Journal of Banking and Finance, Forthcoming Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments October 6, 2019 erstellt
Other identifiers:	10.2139/ssrn.3109477 [DOI]
Classification:	G30 - Corporate Finance and Governance. General ; G32 - Financing Policy; Capital and Ownership Structure ; G12 - Asset Pricing ; G15 - International Financial Markets
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10012900152