Skip to Main Content
 

Global Search Box

 
 
 

ETD Abstract Container

Abstract Header

Media Coverage of Negative Environmental, Social and Governance Issues, and Analyst Cash Flow Forecasts

Hua, Meiying
http://orcid.org/0000-0002-1123-2849
http://rave.ohiolink.edu/etdc/view?acc_num=kent1576678957366195

Abstract Details

2020, PHD, Kent State University, College of Business and Entrepreneurship, Ambassador Crawford / Department of Accounting.
Financial analysts have increasingly investigated a wide variety of nonfinancial factors to better understand their potential impact on the valuation of a firm. This dissertation examines whether a firm’s negative environmental, social and governance (ESG) issues covered by media influence the assessment of financial analysts regarding its future prospects. Specifically, I investigate whether a firm’s media coverage of its ESG activities has an impact on analysts cash flow forecasts and cash flow forecast accuracy. I provide evidence that corporate social irresponsibility (CSI) coverage of ESG issues is negatively associated with analyst issuance of cash flow forecasts. I also find that a firm’s CSI coverage of ESG issues is negatively related to the firm’s analyst cash flow forecast accuracy. The results hold for additional tests including propensity score matching models and Heckman’s two-stage analyses. However, I do not find strong evidence that a firm’s media coverage of environmental issues, social issues or governance issues is positively related to the firm’s analyst cash flow forecast accuracy. Using Liu (2006)’s liquidity-augmented capital asset pricing model (LCAPM), I find that a firm’s media coverage of ESG issues is positively related to accounting-related liquidity risk, indicating that investors may expect higher compensation for liquidity risks when they invest in firms which receive higher CSI coverage. Additionally, I find that an analyst’s decision to issue a cash flow forecast does not play a role in the relation between media coverage of ESG issues and accounting-related liquidity risk. This dissertation provides insights into the link between CSI information and information asymmetry by examining the relation between the third-party-disclosed negative ESG information and accounting-related liquidity risk. The findings of this study have implications for managers, investors, financial analysts, regulators, and other market participants.
Pervaiz Alam (Committee Chair)
Indrarini Laksmana (Committee Member)
Chris Groening (Committee Member)
Dandan Liu (Committee Member)
320 p.
Accounting
Media coverage; Corporate social responsibility; financial analysts; cash flow forecasts; liquidity risk; stakeholder theory; agenda-setting theory

Recommended Citations

Citations

  • Hua, M. (2020). Media Coverage of Negative Environmental, Social and Governance Issues, and Analyst Cash Flow Forecasts [Doctoral dissertation, Kent State University]. OhioLINK Electronic Theses and Dissertations Center. http://rave.ohiolink.edu/etdc/view?acc_num=kent1576678957366195

    APA Style (7th edition)

  • Hua, Meiying. Media Coverage of Negative Environmental, Social and Governance Issues, and Analyst Cash Flow Forecasts. 2020. Kent State University, Doctoral dissertation. OhioLINK Electronic Theses and Dissertations Center, http://rave.ohiolink.edu/etdc/view?acc_num=kent1576678957366195.

    MLA Style (8th edition)

  • Hua, Meiying. "Media Coverage of Negative Environmental, Social and Governance Issues, and Analyst Cash Flow Forecasts." Doctoral dissertation, Kent State University, 2020. http://rave.ohiolink.edu/etdc/view?acc_num=kent1576678957366195

    Chicago Manual of Style (17th edition)

kent1576678957366195
1,272
© 2019, all rights reserved.
This open access ETD is published by Kent State University and OhioLINK.