Media coverage and breadth of ownership

초록

This study investigates the effect of media coverage on the breadth of ownership. We find that media coverage increases the breadth of ownership, particularly among minority investors. We also find that the positive effect is stronger for firms with more analyst following and weaker for those with high advertising intensity. Our results are robust across alternative model specifications. Our findings indicate that media coverage reduces information asymmetry among investors, thereby facilitating their participation in capital markets. Overall, this paper offers practical implications for managers seeking to leverage media strategically to broaden the investor base.

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