Demystifying the interactive impact of analyst certification and investor relations quality on media coverage and firm value

This paper extends prior research on the valuation impact of certification using event studies, by introducing media coverage as a pivotal marketing outcome, to investigate the differences in the way how investor relations (IR) quality certification by local and international analysts shapes media narratives, which in turn drive long-term firm value. Specifically, we use Annual Investor Relations Awards data from Hong Kong Investor Relations Association and media coverage data from Ravenpack to show that investor relations quality enhances the media coverage and positive sentiment leading to higher firm value. We also find contrasting direct effects of the international (vs. local) analyst’s votes on media coverage and firm value and moderating effects on the impact of investor relations quality on media coverage. Our results show that international analysts generate better media attention making even the local investors to buy more stocks and drive their long-term valuations of the certified firms higher.