Impact of Media Coverage on the Discount Rate of Private Placement: Evidence from China

Wu M., Wang R., Ding Y., Nedaei N.

16th International Conference on Management Science and Engineering Management (ICMSEM), Ankara, Türkiye, 3 - 06 Ağustos 2022, cilt.145, ss.188-199, (Tam Metin Bildiri) identifier

  • Yayın Türü: Bildiri / Tam Metin Bildiri
  • Cilt numarası: 145
  • Doi Numarası: 10.1007/978-3-031-10385-8_14
  • Basıldığı Şehir: Ankara
  • Basıldığı Ülke: Türkiye
  • Sayfa Sayıları: ss.188-199
  • Anahtar Kelimeler: Private placement market, Discount rate, Media campaign, Information dissemination, PRESS
  • Gazi Üniversitesi Adresli: Hayır

Özet

There has been widespread concern over the high discount rate in private placements of listed companies in a prosperous society. This research developed media coverage indicators for A-share listed companies in China from 2009 to 2020, and explored the influence of media coverage on the discount rate in private placements based on information asymmetry. The results showed that media coverage can reduce the discount rate of private placement by alleviating the information asymmetry. In addition, there is a negative correlation between media coverage and the discount rate on private placement. This study expanded the literature on private placement, and played an inspirational role of improving the external monitoring mechanism of enterprises and reducing their financing costs, thus providing a constant impetus for the development of enterprises and the social economy.