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

被引:110
作者
Heese, Jonas [1 ]
Perez-Cavazos, Gerardo [2 ]
Peter, Caspar David [3 ]
机构
[1] Harvard Sch Business, Boston, MA USA
[2] Univ Calif San Diego, UCSD Rady Sch Management, 9500 Gilman Dr, La Jolla, CA 92093 USA
[3] Rotterdam Sch Management, Rotterdam, Netherlands
关键词
Corporate misconduct; Local newspapers; Media coverage; MEDIA SLANT; MARKETS; IMPACT; ENTRY; PRESS;
D O I
10.1016/j.jfineco.2021.08.015
中图分类号
F8 [财政、金融];
学科分类号
020219 [财政学(含:税收学)];
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.
引用
收藏
页码:445 / 463
页数:19
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