Do Mass Media News Affect Market Value?

This study aims to analyze the influence of mass media coverage on the market value of banking companies in Indonesia. In the context of financial markets, mass media plays an important role in disseminating information that can affect investors’ expectations regarding the future performance of companies. Using signal theory, this study assumes that positive media coverage can serve as a signal that enhances investors’ positive perceptions, thereby impacting an increase in the company’s market value. This study uses panel data from 28 banking companies listed on the Indonesia Stock Exchange during the period 2019–2023. News data were collected from five major news portals in Indonesia, namely Detik.com, Kompas.com, Liputan6.com, Tribunnews.com, and CNNIndonesia.com. The dependent variable in this study is the market value, calculated based on the stock closing price multiplied by the number of outstanding shares. Meanwhile, the main independent variable is the amount of positive or neutral mass media coverage, and control variables include net income and the company’s total assets. The panel data regression analysis results show that positive mass media coverage has a significant positive effect on the company’s market value. Additionally, net income and total assets also have a significant positive effect on market value. However, the relatively low coefficient of determination (R-squared) indicates that the model still needs to be developed by adding other relevant independent variables. This study provides empirical evidence that mass media coverage, financial performance, and asset structure are important factors influencing the market value of banking companies in Indonesia. These findings have practical implications for company management in designing effective communication strategies and open opportunities for further research on the influence of media on company value.