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Impact of media attention on corporate capacity utilization

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  • Ren, Xueyou
  • Kang, Jiayi
  • Wang, Jinfeng

Abstract

With the media’s growing influence, its impact on corporate operations has drawn increasing attention. Still, the link between media attention and firms’ capacity utilization remains under explored. This study fills that gap by empirically examining how media attention affects corporate capacity utilization, using data from 2000 to 2023. Results show that media attention significantly lowers capacity utilization. Heterogeneity analysis indicates this negative effect is stronger for state-owned enterprises, firms in less competitive markets, those in regions with lower marketization, and companies with weaker responsiveness. These findings highlight media attention’s critical role in corporate operations, reveal its complex influence on performance, and offer new perspectives and evidence on media–business interactions.

Suggested Citation

  • Ren, Xueyou & Kang, Jiayi & Wang, Jinfeng, 2025. "Impact of media attention on corporate capacity utilization," Finance Research Letters, Elsevier, vol. 85(PD).
    • Handle: RePEc:eee:finlet:v:85:y:2025:i:pd:s1544612325014680
    DOI: 10.1016/j.frl.2025.108213
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    Keywords

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    JEL classification:

    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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