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Supply chain spillover effect of media attention to customers from the perspective of real earnings management

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  • Lin, Yuchuan
  • Xing, Xinpeng

Abstract

This paper investigates how media attention to customers affects the supplier's information environment from the perspective of real earnings management. Our empirical results for 2010–2020 reveal a negative association between media attention to customers and the supplier's real earnings management. Causality is established through the instrumental variable two-stage least squares approach. Cross-sectional tests further illustrate that more external supervision and internal constraints are two potential channels for this observed relationship. Overall, our findings emphasize that the media, as a crucial information intermediary, significantly affects the behavior of companies in the supply chain.

Suggested Citation

  • Lin, Yuchuan & Xing, Xinpeng, 2024. "Supply chain spillover effect of media attention to customers from the perspective of real earnings management," Finance Research Letters, Elsevier, vol. 63(C).
    • Handle: RePEc:eee:finlet:v:63:y:2024:i:c:s1544612324003465
    DOI: 10.1016/j.frl.2024.105316
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    References listed on IDEAS

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    More about this item

    Keywords

    Media attention; Supply chain spillover; Real earnings management;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting

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