Explaining Americans’ responses to dread epidemics: an illustration with Ebola in late 2014

Despite several surveys of Americans’ responses to Ebola as people were treated or died in the US in the late fall of 2014, little was published on factors that might affect these responses, despite their value for informing future management and communication regarding outbreaks of novel infectious diseases. This explanatory aim was the goal of a national quota online sample of Americans (n = 815) who reported their beliefs and attitudes about Ebola in early December, three weeks after the second US death. Responses were shaped particularly by risk judgments and concern, but also by available Ebola information (from news attention or residence in a state with Ebola experience), political cues (partisanship, ideology), and demographics. Judgments of personal risk and US/global risk were shaped by largely different factors; for example, knowledge of Ebola exposure routes exhibited negative and positive signs, respectively. News attention was associated with both positive (e.g. trust in US Centers for Disease Control & Prevention [CDC]; knowledge) and negative (e.g. US/global risk perception; concern about a US outbreak and family member infection) reactions. Findings suggest challenges for future health communication.     

The role of numeric and statistical content on risk perception in infographics about road safety

Abstract

Numbers saturate news coverage and health and risk messaging. But as our expertise in the creation of statistical information increases, the ability to use those statistics in decision making remains frustratingly inadequate. There has been a wealth of research related to how to train people to better use the numbers they interact with on a daily basis. Far less research, however, explores the appropriate way to use numbers in communication. Two experiments explored the role of numbers in risk communication infographics related to road safety while driving. Experiment 1 found that the presence of numbers influence risk perception, but whether those numbers reflect accurate statistics or random numbers does not change their influence. Experiment 2 found that removing all statistics entirely from infographics and replacing them with linguistic gist representations of the numbers (i.e. words like ‘some’, ‘many’, ‘none’) increased risk perception even though people found the infographics to be less informative than the ones containing numbers. The results suggest that the gist representations of the numbers in the context of the infographics are equivalent regardless of their value, such that the very presence of statistics influences judgment and risk perception but not their meaning. They also suggest that people do not always realize how they are using statistical information in their judgement and decision making process.     

The Impact of Corporate Governance Press News on Stock Market Returns

Stock market prices reflect information regarding firms’ business environments, operations and, in general, their fundamentals. Recently, various studies have analysed the link between news coverage and stock prices but no evidence exists on how channels and ways of communication of information affect investors’ behaviour. We analyses these aspects focussing on a large sample of corporate governance news published between 2003 and 2007 in ‘Il Sole 24 Ore’, Italy's major financial newspaper. We show that before news is made public investors are only able to assess the type of corporate governance event underlying it. After publication, investors are influenced by the content (positive or negative) and the tone of communication (strong or weak) of the news.     

Science vs. fear: the Ebola quarantine debate as a case study that reveals how the public perceives risk

This study focuses on newspaper coverage of the Hickox quarantine incident, using it as a case study to examine how the media characterized the spread of disease in an ongoing crisis situation characterized by uncertainty. The study builds on Slovic et al.’s research, who argue that risk perception is comprised of both emotional and analytical aspects. We employed a qualitative approach, first examining articles on Hickox’s story in The New York Times and New York Daily News between October 25 and 31, 2014; and second, readers’ comments in response to these articles. The findings from the newspaper articles show that in their treatment of the quarantine debate, the media did not address the issue of uncertainty, and thus continued the health authorities’ neglect of this issue. Although the media gave expression to various sides of the debate, it emphasized those who objected to the quarantine policy, thus raising the claim that the conflict was between ‘science’ and the public’s ‘irrational fears,’ and that the governors decided on quarantine in response to the public’s panic and fears. From our analysis of readers’ comments, it appears that these claims are unjustified. First, we found that the public did not speak in a single unified voice, but rather, was divided into supporters and opponents of quarantine. Both sides used scientific arguments and resorted to similar terminology, and tended to cite and present studies backing their arguments. As for irrational fears, although quarantine supporters expressed emotions, they indicated mainly concerns, not panic or hysteria.     

Who is afraid of the Ebola outbreak? The influence of discrete emotions on risk perception

The appraisal tendency framework (ATF) suggests that discrete emotions mediate the relationship between cognitive appraisals and behaviors. Based on the ATF, this study analyzed and found that fear, anger, anxiety, disgust, and sadness were positively related to the US public’s risk perception about the Ebola outbreak. Fear was also found to inhibit the degree to which systematic processing of the relevant risk information influenced participants’ support for institutional mitigation measures such as sending more health professionals to help countries in West Africa deal with the Ebola outbreak. The result partially confirms the ATF and offers important practical implications in regard to the communication of emergent public health crises.     

The social amplification of risk on Twitter: the case of ash dieback disease in the United Kingdom

It has long been recognised that the traditional media play a key role in representing risk and are a significant source of information which can shape how people perceive and respond to hazard events. Early work utilising the social amplification of risk framework (SARF) sought to understand the discrepancy between expert and lay perceptions of risk and patterns of risk intensification and attenuation with reference to the media. However, the advent of Web 2.0 challenges traditional models of communication. To date there has been limited consideration of social media within the SARF and its role in mediating processes of risk perception and communication. Against this backdrop, we focus on the social media platform Twitter to consider the social amplification of risk in relation to ash dieback disease (Hymenoscyphus fraxineus); a tree health issue that attracted intense media attention when it was first identified in the UK in 2012. We present an empirical analysis of 25,600 tweets in order to explore what people were saying about ash dieback on Twitter, who was talking about it and how they talked about it. Our discussion outlines the themes around which talk about ash dieback was orientated, the significance of users’ environmental ‘affiliations’ and the role of including links (URLs) to traditional media coverage. We utilise the notion of ‘piggybacking’ to demonstrate how information is customised in line with group/individual identities and interests and introduce the concept of the ‘frame fragment’ to illustrate how information is selected and moved around Twitter emphasising certain features of the messages. The paper affords a detailed consideration of the way in which people and organisations simultaneously appropriate, construct and pass on risk-relevant information. A conclusion is that social media has the potential to transform the media landscape within which the SARF was originally conceived, presenting renewed challenges for risk communication.     

Stock prices and geographic proximity of information: Evidence from the Ebola outbreak

Behavioral finance studies reveal that investor sentiment affects investment decisions and may therefore affect stock pricing. This paper examines whether the geographic proximity of information disseminated by the 2014–2016 Ebola outbreak events combined with intense media coverage affected stock prices in the U.S. We find that the Ebola outbreak event effect is the strongest for the stocks of companies with exposure of their operations to the West African countries (WAC) and the U.S. and for the events located in the WAC and the U.S. This result suggests that the information about Ebola outbreak events is more relevant for companies that are geographically closer to both the birthplace of the Ebola outbreak events and the financial markets. The results also show that the effect is more pronounced for small and more volatile stocks, stocks of specific industry, and for the stocks exposed to the intense media coverage. The event effect is also followed by the elevated perceived risk; that is, the implied volatility increases after the Ebola outbreak events.     

Hazard avoidance,symbolic and practical: the case of Americans’ reported responses to Ebola

Reducing potential dangers by changing routine behavior to avoid certain people, places, or technologies can be prudent, but reporting avoidance also can be symbolic. This study probed Americans’ reactions to Ebola from December 2014 to May 2015 with a longitudinal study (final n = 625), plus a representative sample in May: How much did they claim to avoid West Africans, commercial flights, Ebola-associated cities, and four other targets? What factors affected self-reported avoidance? Did people with opportunities to implement avoidance report more (e.g. frequent flyers can change their routine behavior more to avoid commercial flights than can infrequent flyers)? The December 2014 survey found most people never considered avoidance, but substantial minorities claimed acting or intending to avoid each target; substantial majorities of May 2015 respondents reported avoidance intentions if a new Ebola outbreak occurred in Africa or the United States. Perceptions of personal risk, concern about infection, and following Ebola news were primary factors in reported avoidance, with temporal reversals (e.g. news following increased avoidance in December but decreased it in May). Opportunity enhanced reported avoidance in December 2014 by indirect effects through personal risk, concern, and news following, but decreased avoidance intentions in May 2015 through direct effects of opportunity on avoidance. Temporal shifts in avoidance reports and associations seem consistent with objective declines in Ebola cases, perhaps mediated by changes in news coverage. Further consideration of avoidance behavior and the role of opportunity could enhance hazard management.     

Information dissemination on intellectual capital in mergers and acquisitions: purchase price allocations,press releases and business press

In order to reduce information asymmetries in relation to a firm's current decisions and long-term strategy, firms must consistently provide information to stakeholders. This paper investigates intellectual capital (IC) information disclosed in mergers and acquisitions (M&A) provided through three different disclosure channels (voluntary press releases, related newspaper articles and subsequent mandatory corporate disclosures in the notes to the financial statements). For a sample of 215 randomly selected US and European M&As, we analyse 215 press releases, 1025 newspaper articles and 215 purchase price allocations. Our findings suggest that IC disclosure in press releases is not perceived as informative and qualitative forward-looking IC information in voluntary corporate disclosures appears to lack credibility. Moreover, we empirically demonstrate interdependencies across the three disclosure channels. The business press seems to filter IC information provided in press releases. The amount of IC disclosure in the notes to the financial statements is positively associated with prior IC disclosure in newspaper articles, but negatively associated with IC disclosure in press releases. The managements of acquirer firms appear to pay attention to news coverage and public opinion. However, both voluntary and mandatory corporate disclosures appear to substitute rather than complement each other.     

Beyond under the dome: an environmental documentary amplified public risk perception about air pollution in China

Abstract

Air pollution is a major environmental problem in China and it poses serious risks to public health. Based on the social amplification of risk framework (SARF), this study examines how media, in particular, an impactful environmental documentary titled Under the Dome, influenced Chinese citizens’ risk perception about air pollution. Survey results showed that exposure to the documentary amplified risk perception and risk perception was significantly related to viewers’ information seeking behaviors, policy support, and individual mitigation action about this issue.     

Roland W. Scholz: Environmental Literacy in Science and Society. From Knowledge to Decisions. Cambridge University Press 2011

This study pursues the following aims: to examine how news stories use frames, emotions, and uncertainty to present environmental risk information; to identify which aspects of risk issues they highlight; and to analyze how these stories’ representations of risk and uncertainty might differ according to the sources they use. Content analysis of 641 news stories in South Korea over the last decade yields three findings: (1) reassurance was the most frequently used news frame, while uncertainty and emotion were used less often than expected; (2) news stories using government/industry/experts as sources vs. activists/lay people highlighted different news frames and risk information; and (3) the two most frequently used uncertainty presentation formats were single point estimate and verbal estimate. This study contributes to existing literature on the roles of media in environmental risk communication in two ways. First, it examines the specific formats journalists use to present uncertainty about risks. Second, it integrates news frames with the emotional characteristics of risk communication and with differences in risk information characteristics according to source. Implications are discussed regarding how a better understanding of news representations of risk could inform and enhance cooperation between experts and journalists, and lead to more effective environmental risk communication. Finally, this content analysis provides a stepping stone for future research that could further investigate and test how publics respond to risk messages that have varying permutations of emotional content and risk presentation formats.     

Capital market effects of media synthesis and dissemination: evidence from robo-journalism

In 2014, the Associated Press (AP) began using algorithms to write articles about firms’ earnings announcements. These “robo-journalism” articles synthesize information from firms’ press releases, analyst reports, and stock performance and are widely disseminated by major news outlets a few hours after the earnings release. The articles are available for thousands of firms on a quarterly basis, many of which previously received little or no media attention. We use AP’s staggered implementation of robo-journalism to examine the effects of media synthesis and dissemination, in a setting where the articles are devoid of private information and are largely exogenous to the firm’s earnings news and disclosure choices. We find compelling evidence that automated articles increase firms’ trading volume and liquidity. The effects are most likely driven by retail traders. We find no evidence that the articles improve or impede the speed of price discovery. Our study provides novel evidence on the impact of pure synthesis and dissemination of public information in capital markets and initial insights into the implications of automated journalism for market efficiency.     

A new method for early detection of mass concern about public health issues

During a public health crisis, risk communication professionals and other risk managers need timely and reliable information about the public reaction as soon as possible in order to effectively carry out their responsibilities. Based on a data-set of microblog news posts, this article presents a method that can forecast to what extent news about a public health issue will be disseminated. The study makes advances in rapidly tracking citizens’ reaction towards public health issues by monitoring news media on microblog sites. The findings show that the proposed method can detect early on the intensity of social reaction on a public health issue as well as provide alert signals. The method can also complement existing risk detection systems and help in the design of other powerful risk analytics tools.     

Consumer reactions to unfamiliar technologies: mental and social formation of perceptions and attitudes toward nano and GM products

Abstract

Using focus groups, the research analyses the mental and social processes through which consumers form perceptions and opinions about unfamiliar technologies and the derived products, taking the perception of nanotechnology and nano-products, GM and GM products as example. Our findings suggest that limited understanding of the technological principles and lack of (visible) products prevent the formation of experience-based attitudes and behavioral intentions. In this context, consumers interpret and assess cognitive interventions such as product labels or product information, as well as the trustworthiness of unfamiliar information sources, based on heuristic clues, association, mutual reassurance and previous attitudes. The established determinants of technology risk perception (e.g. knowledge, social norms, perceived risks and benefits and controllability) were the subject of constant deliberation and negotiation among participants. Consequently, the perception of risk and technology communication interventions might vary greatly across different locations and segments of the public, complicating risk communication and trust-building.     

Selective Publicity and Stock Prices

I examine how media coverage of good and bad corporate news affects stock prices, by studying the effect of investor relations (IR) firms. I find that IR firms “spin” their clients' news, generating more media coverage of positive press releases than negative press releases. This spin increases announcement returns. Around earnings announcements, however, IR firms cannot spin the news and their clients' returns are significantly lower. This pattern is consistent with positive media coverage increasing investor expectations, creating disappointment around hard information. Using reporter connections and geographical links, I argue that IR firms causally affect both media coverage and returns.     

Effect of corporate disclosure and press media on market liquidity: Evidence from Japan

News on corporate information can enhance clarity or add to confusion for market participants, especially investors. We explore how two diverse types of information dissemination —corporate disclosure and media coverage—influence stock market liquidity by mediating information asymmetries. We conclude that the two information inflows have notable and distinct impacts on liquidity. Our chief finding suggests that information from corporate disclosures induces a wider bid-ask spread, consistent with increased information asymmetries among investors. In contrast, we find that press media coverage—both good and bad news—improves liquidity. This indicates that mass media is a critical channel that provides investors with news to mitigate information uncertainty. Further, this media effect is partly driven by original journalism coverage and assistance for investors' information assimilation. Finally, in the case of stocks in which retail investors' participation is greater, the liquidity-improving effect of mass media is more prominent.     

Quality in risk reporting on energy issues in German news media

In media coverage, the context of the German energy transition, also referred to as Energiewende, casts a spotlight not only on various technology options (e.g. wind or coal power) but also on more abstract topics such as security of supply or electricity prices. Thereby, the public’s assessment of energy-related issues may greatly rely on perceived risks. Focusing on the quality of energy-related risk reporting, this contribution therefore is intended to explore the German print and TV media discourse on energy options or topics. In our sample, one in three articles connects an energy option or topic with an evident or potential unwanted event. Although the media’s effect on actual risk perception involves some controversies, researchers tend to criticize the media as being susceptible to framing and for failing to place unwanted events in perspective, e.g. by not presenting the corresponding likelihood of occurrence, which is necessary to define risk. If this critique holds true, accurate public risk assessment is partly hampered because media coverage implies uncertainty rather than providing all information available. We examined seven indicators of quality reporting derived from literature research: intensity, likelihood, controllability, desired uncertainty, sensationalism, emotional language, and type of unwanted event. Based on German energy media coverage in 2013, we found a relatively high occurrence of intensity and controllability, whereas likelihood and desired uncertainty were reported less often. By aggregating the indicators into a risk-reporting quality index, we did not observe a poor quality of risk reporting on energy issues. In contrast to previous research, the overall quality of energy-related risk reporting can be assessed as at least moderate, implying that the media depicts risks more precisely than assumed. The occurrence of quality indicators thereby significantly depends on the type of unwanted event rather than on the energy option considered.     

Swine flu and hype: a systematic review of media dramatization of the H1N1 influenza pandemic

Highly disconcerting at the time, in retrospective, the 2009 H1N1 influenza pandemic looks like much ado about nothing. As a consequence, many accused the media of having created an artificial hype or hysteria around the new virus, thus contributing to unwarranted public fear. The current paper set out to examine the validity of such accusations. We integrated empirical findings on whether the media dramatized H1N1 on a global scale through systematically reviewing prior content-analytic studies. We developed a coding scheme specifying three indicators of dramatized media coverage that – together – inform about how mass media coverage about H1N1 may amplify risk perceptions in the public: (a) the volume of media coverage, (b) the media content presented, particularly an overemphasis of threat while neglecting measures of self-protection and (c) the tone of coverage. Results show that media attention was immense, that news content stressed threat over precautionary measures, while the pattern of coverage tonality remained nebulous due to conflicting findings. The present review also revealed a critical gap in existing knowledge about the tone of media coverage on H1N1, and discusses implications for future research on dramatization of public health risks by the media.     

Stock price reaction to public and private information

I use Easley and O’Hara's [1992, Journal of Finance 47, 577–604] private information-based trading variable, PIN, together with a comprehensive public news database to empirically measure the effect of private and public information on the post-announcement drift. I show that stocks associated with high PIN, consensus public news surprises, and low media coverage experience low or insignificant drift. Thus not all information acquisition variables have the same effect on the market's efficiency. Whether information is public or private is irrelevant; what matters is whether information is associated with the arrival rate of informed or uninformed traders.     

The influence of the media on government decisions: Evidence from IPOs in China

In contrast to most developed countries that use registration systems, China has implemented an approval system for initial public offering (IPO) applications. As this IPO approval system involves more than a compliance test, the process allows regulators to exercise a large degree of discretion, which provides an opportunity to observe regulators' decision making in capital markets. We examine the outcomes of firms' IPO applications from 2008 to 2014 and find evidence that the media influence regulators' decisions on IPO applications. Specifically, firms that experience negative news coverage are more likely to have their IPO applications rejected. Negative news influences government decisions via both information and monitoring roles. The political connections of a firm can alleviate an adverse outcome from negative news. Moreover, negative news predicts a higher probability of committing fraud as well as lower earnings persistence in the post-IPO period. The evidence from the post-IPO period suggests that the media help improve the efficiency of regulators' decision making. Our results are robust to controlling for endogeneity issues and to adopting alternative measures of news negativity and an alternative sample.