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

Heese, Jonas; Pérez‐Cavazos, Gerardo; Peter, Caspar David

doi:10.1016/j.jfineco.2021.08.015

Cited by 124 publications

(29 citation statements)

References 41 publications

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“…The result indicates that not speaking the language in which financial statements are usually written can be a barrier to processing the financial statements. Second, I find some evidence that the impacts of financial statements are mitigated when local newspaper circulation is low [20,21]. The result is consistent with the argument that local media outlets often have both incentives and skills to process financial statements and share the information with parents who care about how efficiently school districts operate.…”

Section: Chapter 1: Introductionsupporting

confidence: 73%

The Impact of Audited Financial Statements on Local Governments: Evidence from US School Districts

Dong

2022

SSRN Journal

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Section: Chapter 1: Introductionsupporting

confidence: 73%

The Impact of Audited Financial Statements on Local Governments: Evidence from US School Districts

Dong

2022

SSRN Journal

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“…It extends the research examining the efficacy of the local press as a monitor of local firms (e.g. An et al 2020;Gao et al 2020;Kim et al 2021;Heese et al 2022). More broadly, our study complements the literature on the media's role in curtailing undesirable corporate behavior.…”

Section: Introductionsupporting

confidence: 55%

Local Newspaper Layoffs and Workplace Safety*

Kim

Lee

Shin

2023

Asia-Pac J of Fin Stud

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We investigate the role of the local media in curtailing undesirable behaviors of local corporations. We examine the effects of local newspaper layoffs on the workplace safety levels of local firms, finding that firms' total case rates of workplace injuries increase following newspaper layoffs. We also show the mechanisms of reductions in safety‐related expenditures and increased workloads. Cross‐sectional tests find that the monitoring role of these newspapers is more important for firms with weaker labor unions or lower institutional ownership. Overall, our results suggest that local newspapers serve as key corporate monitors and essential information intermediaries, mitigating firms' undesirable behavior.

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“…These models have the advantage of easy interpretability-coefficients can be seen as daily probabilities of an alert for a trader-but are not necessarily the most powerful approach for our sparse data set. Nevertheless, related studies have taken an OLS approach, for example, see Heese et al (2022) but with different identification strategies and timeframes.…”

Section: Econometric Modelsmentioning

confidence: 99%

Work‐from‐home and the risk of securities misconduct

Kanungo

Firth

Gathergood

et al. 2023

Euro Fin Management

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In the wake of the global pandemic, a challenge for CEOs and boards is to set a stakeholder‐acceptable organizational balance between remote and traditional office working. However, the risks of work‐from‐home are not yet fully understood. We describe competing theories that predict the effect on misconduct of a corporate shift to work‐from‐home. Using internal bank data on securities traders we exploit lockdown variation induced by emergency regulation of the Covid‐19 pandemic. Our difference‐in‐differences analysis reveals that working from home lowers the likelihood of securities misconduct; ultimately those working from home exhibit fewer misconduct alerts. The economic significance of these changes is large. Our study makes an important step toward understanding the link between the balance of work locations and the risk that comes with this tradeoff.

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

Cited by 124 publications

References 41 publications

The Impact of Audited Financial Statements on Local Governments: Evidence from US School Districts

The Impact of Audited Financial Statements on Local Governments: Evidence from US School Districts

Local Newspaper Layoffs and Workplace Safety*

Work‐from‐home and the risk of securities misconduct

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