The Corporate Governance Role of the Media: Evidence from Russia
A. Dyck, N. Volchkova, L. Zingales, and N. of Economic Research. National Bureau of Economic Research Cambridge, Mass., USA, (2006)Alexander Dyck - University of Toronto
Natalya Volchkova - New Economic School and CEFIR
Luigi Zingales - Harvard University, NBER, and CEPR
First Draft: October 2004
This Draft: September 2005.
Abstract
We study the effect of media coverage on corporate governance outcomes by focusing on Russia in the period 1999-2002. Russia provides a setting with multiple examples of corporate governance abuses, where traditional corporate governance mechanisms are ineffective, and where we can identify an exogenous source of news coverage arising from the presence of an investment fund, the Hermitage fund, that tried to shame companies by exposing their abuses in the international media. We find that the probability that a corporate governance abuse is reversed is affected by the coverage of the news in the Anglo-American press. The result is not due to the endogeneity of news reporting since this result holds even when we instrument media coverage with the presence of the Hermitage fund among its shareholders and the �natural� newsworthiness of the company involved. We confirm this evidence with a case study.
Alexander Dyck - University of Toronto
Natalya Volchkova - New Economic School and CEFIR
Luigi Zingales - Harvard University, NBER, and CEPR
First Draft: October 2004
This Draft: September 2005
%0 Book
%1 dyck2006cgr
%A Dyck, A.
%A Volchkova, N.
%A Zingales, L.
%A of Economic Research, National Bureau
%D 2006
%I National Bureau of Economic Research Cambridge, Mass., USA
%K governance medgov media_economics mediaeconomics mediastudies medien russia russian russisch
%T The Corporate Governance Role of the Media: Evidence from Russia
%U http://www.law.harvard.edu/programs/olin_center/corporate_governance/papers/L&E-mon.10.10.F05_Zingales.pdf
%X We study the effect of media coverage on corporate governance outcomes by focusing on Russia in the period 1999-2002. Russia provides a setting with multiple examples of corporate governance abuses, where traditional corporate governance mechanisms are ineffective, and where we can identify an exogenous source of news coverage arising from the presence of an investment fund, the Hermitage fund, that tried to shame companies by exposing their abuses in the international media. We find that the probability that a corporate governance abuse is reversed is affected by the coverage of the news in the Anglo-American press. The result is not due to the endogeneity of news reporting since this result holds even when we instrument media coverage with the presence of the Hermitage fund among its shareholders and the �natural� newsworthiness of the company involved. We confirm this evidence with a case study.
@book{dyck2006cgr,
abstract = {We study the effect of media coverage on corporate governance outcomes by focusing on Russia in the period 1999-2002. Russia provides a setting with multiple examples of corporate governance abuses, where traditional corporate governance mechanisms are ineffective, and where we can identify an exogenous source of news coverage arising from the presence of an investment fund, the Hermitage fund, that tried to shame companies by exposing their abuses in the international media. We find that the probability that a corporate governance abuse is reversed is affected by the coverage of the news in the Anglo-American press. The result is not due to the endogeneity of news reporting since this result holds even when we instrument media coverage with the presence of the Hermitage fund among its shareholders and the �natural� newsworthiness of the company involved. We confirm this evidence with a case study.},
added-at = {2008-03-25T06:38:08.000+0100},
author = {Dyck, A. and Volchkova, N. and Zingales, L. and of Economic Research, National Bureau},
biburl = {https://www.bibsonomy.org/bibtex/29f9df6f55c9208bfcab463cf31da02e7/afeld},
description = {medgov},
interhash = {9bc4caea8c548d2fc6d1413bada881b6},
intrahash = {9f9df6f55c9208bfcab463cf31da02e7},
keywords = {governance medgov media_economics mediaeconomics mediastudies medien russia russian russisch},
note = {Alexander Dyck - University of Toronto
Natalya Volchkova - New Economic School and CEFIR
Luigi Zingales - Harvard University, NBER, and CEPR
First Draft: October 2004
This Draft: September 2005},
publisher = {National Bureau of Economic Research Cambridge, Mass., USA},
timestamp = {2008-03-25T06:38:14.000+0100},
title = {{The Corporate Governance Role of the Media: Evidence from Russia}},
url = {http://www.law.harvard.edu/programs/olin_center/corporate_governance/papers/L&E-mon.10.10.F05_Zingales.pdf},
year = 2006
}