School of Accountancy Faculty Publications and Presentations

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The media is an important information intermediary. We investigate the informational role of the media by examining whether media content, measured by the sentiment of news articles, contains information about a firm’s fundamental value beyond that conveyed in earnings, book value, and analyst forecasts. We show that incorporating media content into Ohlson’s (1995) residual income model generally improves its ability to predict future residual income, explain current stock prices, and predict future stock prices. Our results are strengthened when media coverage is higher and when media sentiment is more dispersed


© The Author(s) 2021. This article is published with open access by The Hong Kong Polytechnic University.

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Creative Commons Attribution 4.0 International License
This work is licensed under a Creative Commons Attribution 4.0 International License.

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China Accounting and Finance Review



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