Knowledge that Transforms
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Analysts’ role in shaping non-GAAP reporting: evidence from a natural experiment
Analysts’ annual earnings forecasts and changes to the I/B/E/S database
Textual classification of SEC comment letters
The power of firm fundamental information in explaining stock returns
FSA in an ETF world
Does the media spotlight burn or spur innovation?
We examine the effect of media coverage on firm innovation. Using a comprehensive sample of corporate news coverage and patenting over the period from 2000 to 2012, we find a negative relation between media coverage and firm innovation. We further document the two offsetting economic mechanisms underlying the impact of media coverage on innovation: the media’s role of short-term pressure on managers relates negatively to innovation, while its role of mitigating financial constraints is positively associated with innovation. Our findings provide new insights into the effect of news coverage on firms’ long-term growth.