Harvard Business School Professor Jonas Heese's research reveals that when local newspapers shut down, businesses in those areas tend to commit more illegal violations, including pollution, workplace safety infractions, and financial fraud. Heese's study, conducted in collaboration with researchers from the University of California San Diego and the Rotterdam School of Management, found that violations at publicly listed companies in areas where newspapers closed increased by 1.1 percent, and penalties from regulators rose by 15 percent. This research underscores the critical watchdog role of local newspapers in keeping businesses in check and suggests that media coverage may deter corporate misconduct.

Participants

  • Caspar David Peter
    Role: Faculty
    Reference type: Referenced

Media Outlets

  • Harvard Business School: Working Knowledge (Magazine)