CEO Exposure, Media Influence, and Stock Returns

Yan Chen, Changyu Hu, Wenjie Zhang, Qing Li

Source Title: Journal of Global Information Management (JGIM)29(6)

ISSN: 1062-7375|EISSN: 1533-7995|EISBN13: 9781799872627|DOI: 10.4018/JGIM.20211101.oa43

MLA

Chen, Yan, et al. "CEO Exposure, Media Influence, and Stock Returns." JGIM vol.29, no.6 2021: pp.1-19. http://doi.org/10.4018/JGIM.20211101.oa43

APA

Chen, Y., Hu, C., Zhang, W., & Li, Q. (2021). CEO Exposure, Media Influence, and Stock Returns. Journal of Global Information Management (JGIM), 29(6), 1-19. http://doi.org/10.4018/JGIM.20211101.oa43

Chicago

Chen, Yan, et al. "CEO Exposure, Media Influence, and Stock Returns," Journal of Global Information Management (JGIM) 29, no.6: 1-19. http://doi.org/10.4018/JGIM.20211101.oa43

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Abstract

Media-aware stock movements are well acknowledged by the behavioral finance. As the soul of a firm, CEO’s media behavior is critical to the operation of a firm. CEO’s exposure could have captured the investors’ attention and enhanced the media effect in the stock market in terms of the “eyeball economics”, or CEO’s overexposure could have attracted more attention than firm-specific news, which attenuate the media effect in the stock market due to the investors’ limited attention. This study systematically explores the role and the moderating effect of CEO’s media behavior on the relationship between media content and stock markets. Using daily frequency data for a sample of Chinese stocks, this study shows that higher CEO media exposure attenuates the media effect on stock markets, especially consumer-related stocks.