Media Gatekeeping: Selective Dissemination and the Pricing of Earnings Information
Prof. Jason V. Chen
Associate Professor in Accounting
Department of Accounting
University of Illinois at Chicago
This study examines how an important channel of media gatekeeping – the selective dissemination of information from firm disclosures – shapes price discovery. Using a narrow intraday window, we document significant variation in how the media rapidly filters and reports components of firm earnings news and show that this filtering is associated with differential pricing of earnings. Media outlets are more likely to highlight adjusted (non-GAAP) earnings when excluded items are less relevant for predicting future performance, indicating that selective dissemination enhances news informativeness. Our findings reveal a critical, previously understudied gatekeeping mechanism in the real-time flow of financial information.
