This study examined the impact of local newspaper closures on corporate misconduct in the United States, considering the decline in local newspaper circulation over the past two decades. The research found that local newspaper closures led to a significant increase in corporate violations and penalties by 1.1% and 15.2%, respectively, within three years. This indicates that local newspapers play a crucial role in monitoring and curbing corporate misconduct, contradicting the belief that they may be ineffective due to advertising relationships and resource constraints.

Participants

  • Caspar David Peter
    Role: Faculty
    Reference type: Co-written by

Media Outlets

  • Harvard Law School Forum on Corporate Governance (Online)