The media landscape in the U.S. has changed in important ways over the last 50 years, some subtle and some not subtle at all. And these changes have affected how businesses talk about themselves, how they release information, and even the strategic decisions they make. In a recent study, we document how the rise of partisan media shifted the decisions companies made. Our findings demonstrate that companies act differently depending on what sort of media is paying attention.
Research: The Rise of Partisan Media Changed How Companies Make Decisions
From announcing layoffs to releasing financial information.
October 30, 2017
Summary.
How does exposure to an increasingly partisan media landscape impact businesses? In a recent study, the authors explored how companies made decisions differently based on the political slant of the news in their area. They found that in order to manage their reputations, Democratic-leaning companies who were exposed to Fox News coverage delayed announcing layoffs, plant closures, and other negative financial information until after the 2000 presidential election. While there are pros and cons to a more politically-divided news media, there’s little doubt that these trends can have a significant impact on how businesses make and communicate key decisions.