The Impact of Online Media Coverage on Enterprise Performance: The Moderating Role of Managerial Ability

Purpose - This study examines the relationship between online media coverage (both positive and negative) and enterprise performance and explores the moderating role of Managerial ability in mitigating the negative effects of unfavorable media reports. Design/methodology/approach - Using panel data from Chinese manufacturing enterprises from 2013 to 2022, this study analyzes the impact of positive and negative online media coverage on enterprise performance. Interaction terms are introduced to assess the moderating role of managerial ability in mitigating the negative effects of media coverage. Robustness checks are conducted to ensure the reliability of the findings. Findings - The results show that positive online media coverage enhances enterprise performance, while negative coverage harms it. Managerial ability does not moderate the effects of positive media coverage, suggesting that firms benefit from favorable media exposure regardless of managerial strength. However, Managerial ability significantly mitigates the negative impact of unfavorable media reports, highlighting its role in managing reputational risks. Furthermore, industry-level analysis reveals heterogeneous effects, with firms in sectors such as food and machinery being more sensitive to media sentiment, while those in chemicals and metals exhibit weaker performance responses. Research implications or Originality - This study provides new insights into the role of media coverage in enterprise performance and the importance of Managerial ability in mitigating reputational risks. It offers practical implications for enterprise leaders and policymakers, emphasizing the need for proactive media engagement and crisis management.