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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.

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  • 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. Bernhardt, Lea & Dewenter, Ralf & Thomas, Tobias, 2020. "Watchdog or loyal servant? Political media bias in US newscasts," DICE Discussion Papers 348, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    2. Bassanini, Andrea & Caroli, Eve & Fontaine, François & Rebérioux, Antoine, 2021. "Escaping social pressure: Fixed-term contracts in multi-establishment firms," Journal of Economic Behavior & Organization, Elsevier, vol. 188(C), pages 697-715.
    3. Piolatto, Amedeo & Schuett, Florian, 2015. "Media competition and electoral politics," Journal of Public Economics, Elsevier, vol. 130(C), pages 80-93.
    4. Heinz, Matthias & Swinnen, Johan, 2015. "Media slant in economic news: A factor 20," Economics Letters, Elsevier, vol. 132(C), pages 18-20.
    5. 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.
    6. Dewenter, Ralf & Dulleck, Uwe & Thomas, Tobias, 2016. "Does the 4th estate deliver? Towards more direct measure of political media bias," Working Paper 175/2016, Helmut Schmidt University, Hamburg.
    7. Graham Beattie & Ruben Durante & Brian Knight & Ananya Sen, 2021. "Advertising Spending and Media Bias: Evidence from News Coverage of Car Safety Recalls," Management Science, INFORMS, vol. 67(2), pages 698-719, February.
    8. 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.
    9. 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 of Labor Economics (IZA).
    10. Ralf Dewenter & Uwe Dulleck & Tobias Thomas, 2020. "Does the 4th estate deliver? The Political Coverage Index and its application to media capture," Constitutional Political Economy, Springer, vol. 31(3), pages 292-328, September.
    11. Dewenter, Ralf & Dulleck, Uwe & Thomas, Tobias, 2018. "The political coverage index and its application to government capture," Research Papers 6, EcoAustria – Institute for Economic Research.
    12. Schulz, Ann-Christine & Johann, Sarah, 2018. "Downsizing and the fragility of corporate reputation: An analysis of the impact of contextual factors," Scandinavian Journal of Management, Elsevier, vol. 34(1), pages 40-50.
    13. Dewenter, Ralf & Linder, Melissa & Thomas, Tobias, 2018. "Can media drive the electorate? The impact of media coverage on party affiliation and voting intentions," Research Papers 7, EcoAustria – Institute for Economic Research.
    14. Hirsch, Patrick & Köhler, Ekkehard A. & Feld, Lars P. & Thomas, Tobias, 2020. ""Whatever it takes!": How tonality of TV-news affects government bond yield spreads during crises," Freiburg Discussion Papers on Constitutional Economics 20/09, Walter Eucken Institut e.V..
    15. Dewenter, Ralf & Linder, Melissa & Thomas, Tobias, 2019. "Can media drive the electorate? The impact of media coverage on voting intentions," European Journal of Political Economy, Elsevier, vol. 58(C), pages 245-261.
    16. Maxim Ananyev & Michael Poyker & Yuan Tian, 2021. "The safest time to fly: pandemic response in the era of Fox News," Journal of Population Economics, Springer;European Society for Population Economics, vol. 34(3), pages 775-802, July.
    17. Andrea Mangani, 0. "Media bias against women in music: an empirical analysis of Italian music magazines," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 0, pages 1-20.
    18. 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.
    19. Andrea Bassanini & Eve Caroli & Bruno Chaves Ferreira & Antoine Reberioux, 2020. "Don’t Downsize This! Social Reactions to Mass Dismissals on Twitter," Post-Print halshs-03012930, HAL.
    20. Thomas, Tobias, 2020. "Zur Rolle der Medien in der Demokratie," Research Papers 12, EcoAustria – Institute for Economic Research.
    21. Heinz, Matthias & Drzensky, Frank, 2013. "The Hidden Costs of Downsizing," VfS Annual Conference 2013 (Duesseldorf): Competition Policy and Regulation in a Global Economic Order 79764, Verein für Socialpolitik / German Economic Association.
    22. Andrea Mangani, 2021. "Media bias against women in music: an empirical analysis of Italian music magazines," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 657-676, July.
    23. 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.
    24. repec:hrv:faseco:33078973 is not listed on IDEAS

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    More about this item

    Keywords

    Media economics; Globalization; Economic xenophobia; Multi-national enterprises; Foreign direct investment;
    All these keywords.

    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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