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Media Managing Study Paper Overview

Project id 1004846
Subject area Other
Document type Essay
Words 1590
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Researchers often assume a firm’s media coverage can be an exogenous consequence of actual news about the firm. In this paper I show that companies actively manage the quantity of media coverage they receive, increasing coverage of very good news and decreasing insurance of bad news. Companies do this mass media managing by including “mass media experts” on the board of directors. That's, coverage in the news headlines media is, partly, a choice that companies make. Here is a good example that describes the objectives of companies from media professionals I consider in this paper: In 1985, former Philip Morris leader Hamish Maxwell wrote the next within an internal memo: “Numerous media proprietors that I've spoken to are sympathetic to your placement - Rupert Murdoch [who was on the Philip Morris plank at that period] and Malcolm Forbes are two cases. The media just like the cash they make from our advertisements plus they are an ally that people can and really should exploit.” Another Philip Morris worker mentioned the next in the appendix of the same memo: “Murdoch’s papers seldom publish any anti-smoking content articles these days.” The theory that the media focus on corporations with press connections is normally Herman and Chomsky’s (1988) propaganda theory, which postulates that business connections between mass media and corporate globe determines the kind of news that's presented in press. I exploit a novel dataset which allows me to infer the connections between your firm and the media: existence of insiders (Mass media Specialists) on a firm’s table who have media encounter at an owner/table member/editor/journalist level as a way of measuring the firm’s willingness to actively take care of regards to media. I show that indicator predicts long term press coverage. Furthermore, We.

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