Media Conglomeration, Local News, and Capital Market Consequences

• 成果类型: Article
• 署名作者: Dyer, Travis; Lang, Mark; Oh, Jun
• 署名单位: Brigham Young University; University of North Carolina; University of North Carolina Chapel Hill; University of North Carolina School of Medicine; Purdue University System; Purdue University
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2023.02247
• 发表日期: 2025
• 关键词: media conglomeration; local news; Local bias; investor geography

摘要

We examine the effect of news media consolidation on local business coverage and its consequences for firms, investors, and capital markets. Using television transcripts, we find a substantial drop in coverage of local firms following the consolidation of local television stations associated with Sinclair acquisitions. Local information search, institutional portfolio local bias, and overall retail trading decrease for firms in treated geographic areas. Results are most pronounced for small firms, for stations with higher ex ante viewership, and for stations with greater reductions in local coverage. Our results provide insight into the consequences of media consolidation for local business coverage, firms, investors, and capital markets.