The impact of emerging market media coverage on corporate innovation investment: evidence from China

Abstract

Along with the acceleration of the process of innovation investment in recent years, emerging market media coverage has been utilized by companies to enhance their competitiveness. The study conducts a theoretical analysis and an empirical test of the relationship between media reports and innovation investment, as well as the impact of media reporting attitude and reporting source on corporate innovation, using panel data for the period 2010-2021 for A-share-listed companies in Shanghai and Shenzhen, China. These findings show that media reports are influenced by media emotions, which can promote corporate investment in innovation, mainly in non-state-owned enterprises. They also have implications for enterprises and governments, who can leverage the media and public opinion to align with long-term interests and promote the positive development of enterprises.