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