Title

Trial by media: an empirical investigation of corporate reputation and stock returns in Australia

Document Type

Article

Publication details

Sinnewe, E & Niblock SJ 2015, 'Trial by media: an empirical investigation of corporate reputation and stock returns in Australia', Journal of Media Economics, vol. 28, no. 1, pp. 41-60.

Published version available from:

http://dx.doi.org/10.1080/08997764.2014.997243

Peer Reviewed

Peer-Reviewed

Abstract

This article examines whether investors are able to generate abnormal risk-adjusted returns in the Australian market based on media-specific firm reputational factors under market uncertainty between 2004 and 2012. The findings suggest that after controlling for crisis-centric time periods and market risk factors, contrarian trading strategies produce abnormal returns for poor corporate reputation firms but not for their good corporate reputation counterparts. Corporate reputation may be a driver of performance for poorly performing Australian firms and could be considered a stimulus for trading activity due to its explanatory capabilities.