How is media coverage on corporate scandals shaped by any prior coverage of wrongdoing in the firm’s industry, the firm’s response strategy to the scandal and any interplay between these two aspects? We examine this research question by focusing on expectancy violation as a mechanism that underpins media agenda-setting and news selection. Empirically, we analyse mass media coverage of corporate scandals, utilizing a novel dataset of 201 scandals. We find that prior coverage of wrongdoing is associated with higher levels of overall media coverage but lower levels of coverage in the immediate wake of a scandal. Counterintuitively, we find that using denial as a response strategy can be beneficial for companies with a history of wrongdoing, as this choice attracts lower levels of media attention. Our study thus offers a more elaborate explanation than the prior literature regarding the temporality of media attention to corporate scandals, both empirically and theoretically.
