Media inclinations,whether favorable or biased,play a pivotal role in shaping public opinion.Sometimes,media coverage may unintentionally foster skepticism towards foreign firms,which could create challenges for those...Media inclinations,whether favorable or biased,play a pivotal role in shaping public opinion.Sometimes,media coverage may unintentionally foster skepticism towards foreign firms,which could create challenges for those companies when they enter new markets.Based on a panel dataset from 2005 to 2020,this is one of the first studies to investigate empirically the impact of media opinion on outward foreign direct investment(OFDI)behaviors at the firm level.The media inclination index was constructed according to the varying inclinations of media from different countries in their reporting on each event.We examined the impact of media inclination on the investment value,frequency,and number of industries.This study has revealed the following insights:(i)Positive media coverage can stimulate the investment behavior of Chinese firms.(ii)The heterogeneity analysis indicates that the promotional effect of media reporting inclination on OFDI is more significant for state-owned firms from the investor's perspective and especially pronounced for firms in developing countries from the investee's perspective.(iii)Diplomatic visits and scientific research cooperation can amplify the positive impact of media opinions on the OFDI behaviors of Chinese firms.展开更多
基金the National Natural Science Foundation of China(No.72303146)Project of Shanghai Science and Technology Innovation Action Plan 2022(No.22692105200)+1 种基金the National Social Science Major Fund of China(No.22ZDA062)the Fundamental Research Funds for the Central Universities(No.2020110308).
文摘Media inclinations,whether favorable or biased,play a pivotal role in shaping public opinion.Sometimes,media coverage may unintentionally foster skepticism towards foreign firms,which could create challenges for those companies when they enter new markets.Based on a panel dataset from 2005 to 2020,this is one of the first studies to investigate empirically the impact of media opinion on outward foreign direct investment(OFDI)behaviors at the firm level.The media inclination index was constructed according to the varying inclinations of media from different countries in their reporting on each event.We examined the impact of media inclination on the investment value,frequency,and number of industries.This study has revealed the following insights:(i)Positive media coverage can stimulate the investment behavior of Chinese firms.(ii)The heterogeneity analysis indicates that the promotional effect of media reporting inclination on OFDI is more significant for state-owned firms from the investor's perspective and especially pronounced for firms in developing countries from the investee's perspective.(iii)Diplomatic visits and scientific research cooperation can amplify the positive impact of media opinions on the OFDI behaviors of Chinese firms.
