JOURNAL ARTICLE

Media Conglomeration, Local News, and Capital Market Consequences.

  • Published In: Management Science (INFORMS), 2025, v. 71, n. 8. P. 6602 1 of 3

  • Database: Business Source Ultimate 2 of 3

  • Authored By: Dyer, Travis; Lang, Mark; Oh, Jun 3 of 3

Abstract

This article investigates the impact of news media consolidation on local business coverage and its subsequent effects on firms, investors, and capital markets, focusing on Sinclair Broadcast Group's acquisition of local television (TV) stations. Using TV news transcripts and investor data, the study finds that Sinclair acquisitions lead to a significant reduction in coverage of local firms relative to national firms, increased homogenization of news content, and a substitution of local business news with broader macroeconomic coverage. These changes correspond with decreased local investor information search, reduced local institutional portfolio bias, and lower retail trading in affected designated market areas (DMAs), with effects most pronounced for smaller firms, stations with higher viewership, and stations exhibiting greater declines in local coverage. The findings highlight how media consolidation can diminish local business information availability, influencing investor behavior and potentially disadvantaging local investors, thereby informing ongoing policy debates on media ownership and local journalism.

Additional Information

  • Source:Management Science (INFORMS). 2025/08, Vol. 71, Issue 8, p6602
  • Document Type:Article
  • Subject Area:Business and Management
  • Publication Date:2025
  • ISSN:0025-1909
  • DOI:10.1287/mnsc.2023.02247
  • Accession Number:187706408
  • Copyright Statement:Copyright of Management Science (INFORMS) is the property of INFORMS: Institute for Operations Research & the Management Sciences and its content may not be copied or emailed to multiple sites without the copyright holder's express written permission. Additionally, content may not be used with any artificial intelligence tools or machine learning technologies. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

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