Research

Dissertation: After-Hours Market Reactions and Media Coverage of Firms’ Earnings Announcements

• Committee: Kenneth Merkley (chair), Brian Miller, Noah Stoffman, and Jim Wahlen

Working Paper: Business Press Independence: Evidence From Media Common Ownership

• Co-authors: Kenneth Merkley (Indiana University), Joseph Pacelli (Harvard Business School), and Brady Twedt (Texas A&M University)

• Under second round review at The Accounting Review

• Abstract: This study examines how common media holding companies impact business press independence. Consistent with common media holding companies reducing the diversity of perspectives among journalists, we find that media outlets are more likely to cover the same earnings announcement and utilize more similar tone and content when they belong to a common holding company. We also provide evidence on how content sharing within holding companies is moderated by outlet quality and economic incentives to share content. Finally, we provide evidence consistent with coverage by common media holding companies impeding price formation. Overall, our findings suggest that content within common media holding companies is less diverse, and that this may have negative implications for markets.

Working Paper: The Media's Emphasis of Earnings Benchmarks

• Solo-authored

• Presented at Indiana University

• Abstract: In this study, I examine the media’s emphasis of earnings benchmarks in article headlines to convey earnings news. First, I provide evidence that there is significant variation in earnings benchmark mentions across media outlets’ headlines covering the same earnings announcements. I find that the frequency of headlines mentioning year-over-year earnings changes has decreased significantly over time, while mentions comparing earnings to analysts’ consensus forecasts remain common and stable. Notably, the frequency of headlines that do not emphasize any earnings benchmark has increased significantly. I also examine how media outlets’ emphasis of different earnings benchmarks relates to firm and media characteristics. Second, I focus on the impact of the media’s emphasis of benchmarks on investors’ earnings benchmark preference at the earnings-announcement level. I find that the market response to the analysts’ consensus benchmark increases as media headlines more frequently mention this benchmark, but find no difference for the other earnings benchmarks. Overall, my study extends the extant research on investors’ benchmark preferences and examines an unexplored mechanism through which the media potentially influences investors’ use of earnings benchmarks.

Work-in-Progress: Wealth Transfer Effects of Media Coverage

• Co-authors: Kenneth Merkley (Indiana University) and Anish Sharma (University of Georgia)