Profit over Public Good: The Impact of Investment Firm Ownership on Local News and Political Behavior

03 September 2024, Version 1
This content is an early or alternative research output and has not been peer-reviewed at the time of posting.

Abstract

Local newspapers play an important role in informing the public and holding elected officials accountable, yet the rise of newspaper owners that deal primarily in investments and not media has raised questions about the commitment of newsrooms to reporting on local politics. I document 856 instances of ownership changes among daily newspapers between 2004-2020, with just under half involving a purchase by an owner who primarily deals in investments. I find that a newspaper's acquisition by an investment-owner leads to more stories about national politics and fewer stories about local politics relative to acquisitions by other types of owners. I also find that a transition to investment ownership leads to reductions in both citizen knowledge and voter turnout, which in turn benefits local incumbents. These findings suggest that the rise of investment ownership is harming local newsrooms and the populations they serve.

Keywords

Local News
Political Behavior
Local Elections
News Content

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