When the local newspaper leaves town: The effects of local newspaper closures on corporate misconduct

• 成果类型: Article
• 署名作者: Heese, Jonas; Perez-Cavazos, Gerardo; Peter, Caspar David
• 署名单位: Harvard University; University of California System; University of California San Diego; Erasmus University Rotterdam - Excl Erasmus MC; Erasmus University Rotterdam
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2021.08.015
• 发表日期: 2022
• 页码: 445-463
• 关键词: Corporate misconduct; Local newspapers; Media coverage

摘要

We examine whether the local press is an effective monitor of corporate misconduct. Specifically, we study the effects of local newspaper closures on violations by local facilities of publicly listed firms. After a local newspaper closure, local facilities increase violations by 1.1% and penalties by 15.2%, indicating that the closures reduce firm monitoring by the press. This effect is not driven by the underlying economic conditions, the underlying local fraud environment, or the underlying firm conditions. Taken together, our findings indicate that local newspapers are an important monitor of firms' misconduct. (C) 2021 Elsevier B.V. All rights reserved.