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Media slant against foreign owners: Downsizing

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  • Friebel, Guido
  • Heinz, Matthias

Abstract

Using a unique data set from nationally distributed quality newspapers in Germany, we find evidence for both quantitative and qualitative media slant against foreign firms. A downsizing foreign firm receives almost twice as much attention as a domestic firm, and the tone of media reports is more negative. Media slant is a measure for economic xenophobia directed against foreign owners, which constitutes an obstacle to foreign direct investment.

Suggested Citation

  • Friebel, Guido & Heinz, Matthias, 2014. "Media slant against foreign owners: Downsizing," Journal of Public Economics, Elsevier, vol. 120(C), pages 97-106.
    • Handle: RePEc:eee:pubeco:v:120:y:2014:i:c:p:97-106
    DOI: 10.1016/j.jpubeco.2014.09.001
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    Cited by:

    1. Piolatto, Amedeo & Schuett, Florian, 2015. "Media competition and electoral politics," Journal of Public Economics, Elsevier, vol. 130(C), pages 80-93.
    2. Heinz, Matthias & Swinnen, Johan, 2015. "Media slant in economic news: A factor 20," Economics Letters, Elsevier, vol. 132(C), pages 18-20.
    3. repec:eee:pubeco:v:153:y:2017:i:c:p:82-91 is not listed on IDEAS
    4. Gambaro, Marco & Puglisi, Riccardo, 2015. "What do ads buy? Daily coverage of listed companies on the Italian press," European Journal of Political Economy, Elsevier, vol. 39(C), pages 41-57.
    5. Friebel, Guido & Heinz, Matthias & Zubanov, Nick, 2016. "The Effect of Announced Downsizing on Workplace Performance: Evidence from a Retail Chain," IZA Discussion Papers 9739, Institute for the Study of Labor (IZA).
    6. Dewenter, Ralf & Linder, Melissa & Thomas, Tobias, 2018. "Can media drive the electorate? The impact of media coverage on party affiliation and voting intentions," DICE Discussion Papers 287, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    7. Garz, Marcel & Sörensen, Jil, 2017. "Politicians under investigation: The news Media's effect on the likelihood of resignation," Journal of Public Economics, Elsevier, vol. 153(C), pages 82-91.
    8. John P. Weche Geluebcke & Isabella Wedl, 2013. "Environmental Protection of Foreign Firms in Germany: Does the country of origin matter?," Working Paper Series in Economics 267, University of Lüneburg, Institute of Economics.
    9. Heinz, Matthias & Drzensky, Frank, 2013. "The Hidden Costs of Downsizing," Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79764, Verein für Socialpolitik / German Economic Association.
    10. Matthias Heinz & Johan Swinnen, 2013. "Media Bias in Economic News: A Factor 20," LICOS Discussion Papers 33013, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    11. repec:hrv:faseco:33078973 is not listed on IDEAS

    More about this item

    Keywords

    Media economics; Globalization; Economic xenophobia; Multi-national enterprises; Foreign direct investment;

    JEL classification:

    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General

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