Media Slant Against Foreign Owners: Downsizing

Journal of Public Economics, Vol. 120, pp. 97-106

Guido Friebel,
Matthias Heinz
Research Area:
Law and Finance
Dec 2014
Media economics, Globalization, Economic xenophobia, Multi-national enterprises, Foreign direct investment

Using a unique data set from nationally distributed quality newspapers in Germany, we find evidence for both quantitative and qualitative media slant against foreign firms. A downsizing foreign firm receives almost twice as much attention as a domestic firm, and the tone of media reports is more negative. Media slant is a measure for economic xenophobia directed against foreign owners, which constitutes an obstacle to foreign direct investment.

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