Media can greatly influence information incorporation of capital market through its information processing and communication functions.Different from previous study, this paper investigates the differentiated impact of heterogeneous media (central media vs. local media) on the information efficiency of China's capital market.It comes to the results as follows:firstly, central media can directly advance information efficiency of the capital market and also indirectly improve information efficiency of the capital market through weakening the adverse effect of political connections on information incorporation of capital market; secondly, although local media can directly advance information efficiency of the capital market, it is basically unable to erode the adverse effect of political connections on information incorporation of capital market and does not play an indirect role when political involvement faces local media.The results take the possibly resulting endogeneity when the media tracks listed companies, and are still robust in a series of tests.It believes that compared with local media, the central media can provide an explanation for these findings owing to its information acquisition and processing advantages under low information transparency and objective advantage of maintaining objective coverage when political capture pressure faces it.
Heterogeneous Media and Information Efficiency of Capital Market
Journal of Finance and Economics Vol. 42, Issue 03, pp. 83 - 94 (2016) DOI:10.16538/j.cnki.jfe.2016.03.007
Cite this article
Yang Yulong, Wu Mingming, Wang Jing, et al. Heterogeneous Media and Information Efficiency of Capital Market[J]. Journal of Finance and Economics, 2016, 42(3): 83–94.
Previous: A Study of Implicit Accountability of IEC Members:On the Enlightenment of Registration-based IPO System