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The value of public information: Media coverage of incumbent firms and entrepreneurial activities

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  • Song, Zijie
  • Guo, Chenyun
  • Chen, Yanying
  • Zhu, Hang

Abstract

Extant research has examined the impact of private information on entrepreneurial opportunity discovery, but it has largely overlooked the role of public information, especially that on incumbent firms. Addressing this gap is crucial given the significant information deficiencies in weak formal institutions such as emerging market economies. In this study, we draw on insights from the classical view of entrepreneurial opportunity and posit that the media coverage of listed firms can assist potential entrepreneurs in gathering and processing information. By analyzing multi-source data on 290 cities and 78 two-digit industries spanning the period of 2008–2019, we find a positive relationship between the media coverage and industrial entrepreneurship. This relationship weakens when the focal industry is targeted by an industrial policy or receives more negative reports, whereas it is more pronounced in industries with greater investment irreversibility. This study contributes to the literature on entrepreneurial opportunity and public information.

Suggested Citation

  • Song, Zijie & Guo, Chenyun & Chen, Yanying & Zhu, Hang, 2025. "The value of public information: Media coverage of incumbent firms and entrepreneurial activities," Journal of Business Research, Elsevier, vol. 197(C).
    • Handle: RePEc:eee:jbrese:v:197:y:2025:i:c:s0148296325002681
    DOI: 10.1016/j.jbusres.2025.115445
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