Media Conglomeration, Local News, and Capital Market Consequences

Management Science, Forthcoming

65 Pages Posted: 28 Mar 2022 Last revised: 10 Mar 2024

See all articles by Travis Dyer

Travis Dyer

Brigham Young University

Mark H. Lang

University of North Carolina at Chapel Hill

Jun Oh

Hong Kong University of Science & Technology (HKUST) - Department of Accounting

Date Written: March 5, 2024

Abstract

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.

Keywords: media conglomeration, local news, local bias, investor geography

JEL Classification: D83, G11, G12, G14, L82, M40

Suggested Citation

Dyer, Travis and Lang, Mark H. and Oh, Jun, Media Conglomeration, Local News, and Capital Market Consequences (March 5, 2024). Management Science, Forthcoming, Available at SSRN: https://ssrn.com/abstract=4055618 or http://dx.doi.org/10.2139/ssrn.4055618

Travis Dyer (Contact Author)

Brigham Young University ( email )

Provo, UT 84602
United States

Mark H. Lang

University of North Carolina at Chapel Hill ( email )

Kenan-Flagler Business School
McColl Building
Chapel Hill, NC 27599-3490
United States
919-962-1644 (Phone)
919-962-4727 (Fax)

Jun Oh

Hong Kong University of Science & Technology (HKUST) - Department of Accounting ( email )

Clear Water Bay
Kowloon
Hong Kong

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