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Media sentiment and corporate R&D manipulation

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  • Luo, Qi
  • Li, Hanqi

Abstract

Using samples of Chinese listed companies from 2009 to 2023, this study examines the impact of media sentiment on corporate research and development (R&D) manipulation. Findings reveal companies’ tendency to engage in upward (downward) R&D manipulation under positive (negative) media sentiment. Further analysis suggests that upward manipulation is motivated by a desire to cater to investor optimism fostered by positive media sentiment, while downward manipulation is motivated by a desire to alleviate performance pressures owing to negative media sentiment.

Suggested Citation

  • Luo, Qi & Li, Hanqi, 2025. "Media sentiment and corporate R&D manipulation," Finance Research Letters, Elsevier, vol. 81(C).
    • Handle: RePEc:eee:finlet:v:81:y:2025:i:c:s1544612325007640
    DOI: 10.1016/j.frl.2025.107505
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    References listed on IDEAS

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