Do local newspapers matter to institutional investors?
研究发现，美国地方报纸停刊后，机构投资者会减少对停刊报纸所在地区公司的持股，尤其是非本地或非对冲基金机构，表明地方报纸是机构投资者获取地理分散信息的重要渠道。
Abstract This study examines the informational role of local newspapers in institutional investments. Exploring local newspaper closures across US counties, we document that institutional investors significantly reduce their holdings in firms located near the closed newspapers. The post‐closure decrease in institutional holdings is concentrated for non‐local or non–hedge fund institutions. In contrast, institutions that are likely to possess information advantages—local institutions or hedge funds—do not decrease their holdings and may even increase them when faced with a lack of local news coverage. Further analysis reveals that local newspaper closures adversely impact institutional investors' ability to predict firms' stock returns, particularly for non‐local or non–hedge fund institutions. Collectively, we provide novel evidence suggesting that local newspapers are a key channel through which institutional investors acquire geographically scattered information.