Semantic Scholar Open Access 2020 159 sitasi

Financing dies in darkness? The impact of newspaper closures on public finance

Pengjie Gao Chang Lee Dermot Murphy

Abstrak

We examine how local newspaper closures affect public finance outcomes for local governments. Following a newspaper closure, municipal borrowing costs increase by 5–11 basis points, costing the municipality an additional $650,000 per issue. This effect is causal and not driven by underlying economic conditions. The loss of government monitoring resulting from a closure is associated with higher government wages and deficits and increased likelihoods of costly advance refundings and negotiated sales. Overall, our results indicate that local newspapers hold their governments accountable, keeping municipal borrowing costs low and ultimately saving local taxpayers money.

Topik & Kata Kunci

Business

Penulis (3)

Pengjie Gao

Chang Lee

Dermot Murphy

Format Sitasi

APA MLA BibTeX

Gao, P., Lee, C., Murphy, D. (2020). Financing dies in darkness? The impact of newspaper closures on public finance. https://doi.org/10.2139/SSRN.3175555

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Informasi Jurnal

Tahun Terbit: 2020
Bahasa: en
Total Sitasi: 159×
Sumber Database: Semantic Scholar
DOI: 10.2139/SSRN.3175555
Akses: Open Access ✓