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.

中文翻译：

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当当地报纸离开城镇时：当地报纸关闭对公司不当行为的影响

我们检查当地媒体是否是企业不当行为的有效监督者。具体来说，我们研究了当地报纸关闭对上市公司当地设施违规的影响。当地报纸关闭后，当地设施的违规行为增加了 1.1%，处罚增加了 15.2%，这表明关闭减少了对媒体的严格监控。这种影响不是由潜在的经济状况、潜在的当地欺诈环境或潜在的公司状况驱动的。综上所述，我们的调查结果表明，地方报纸是公司不当行为的重要监测者。