Does the media spotlight burn or spur innovation?

Lili Dai, Rui Shen, Bohui Zhang

Research output: Contribution to journalArticlepeer-review

32 Citations (Scopus)


We examine the effect of media coverage on firm innovation. Using a comprehensive sample of corporate news coverage and patenting over the period from 2000 to 2012, we find a negative relation between media coverage and firm innovation. We further document the two offsetting economic mechanisms underlying the impact of media coverage on innovation: the media’s role of short-term pressure on managers relates negatively to innovation, while its role of mitigating financial constraints is positively associated with innovation. Our findings provide new insights into the effect of news coverage on firms’ long-term growth.
Original languageEnglish
Pages (from-to)343-390
Number of pages48
JournalReview of Accounting Studies
Issue number1
Early online date18 Jul 2020
Publication statusPublished - Mar 2021
Externally publishedYes


  • Financial constraint
  • Firm innovation
  • Managerial myopia
  • Media coverage


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