The Media Coverage of CEOs and Investor Sentiment

• Main Authors: Cheng Yu Hsieh, 謝承佑
• Other Authors: C. L. Liu
• Format: Others
• Published: 2013
• Online Access: http://ndltd.ncl.edu.tw/handle/41193381682872747388

碩士 === 長庚大學 === 工商管理學系 === 101 === This study examines the relation between media coverage of CEOs and investor sentiment. Bergman and Roychowdhury (2008) suggest that during low-sentiment periods, managers increase the frequency of long-horizon earnings forecasts that walk up consensus analyst estimates. This paper argues that companies increase earnings forecasts by using mass media, and thus we apply this concept to treat earnings forecasts as mass media increases. This study used 4 newspapers to establish media coverage of CEOs database during the period of 2010 to 2012. We used direct sentiment index and indirect sentiment index to examine the relation between media coverage of CEOs for each year. The results find that a negative relation between media coverage of CEOs and investor sentiment for each year. As during low-sentiment period, media coverage of CEOs will increase. This thesis has implications to investors when they make investment decisions.