The impact of media ownership structure on news coverage

We are living in the information age, where reliable and timely information is one of the most valuable resources. This information shapes public opinion, influences political decisions, affects the trading activities of individual and institutional investors (including hedge funds, mutual funds, and pension funds), impacts corporate decision-making, and guides the actions of public entities like central banks (Tetlock, 2007; Bushee et al., 2010; Solomon et al., 2014; Gao et al., 2020). Therefore, access to trusted, objective information is essential for decision making throughout our society.

However, this significance also incentivizes various groups to influence the type and tone of information that reaches the public. For example, according to Financial Times (2021), hedge funds and private equity firms now control half of the daily newspapers in the U.S., which raises concerns about the independence and objectivity of news coverage.

Despite the importance of this issue, there is limited evidence on how media ownership structures affect the content and tone of news coverage. This project aims to address this gap in the existing literature. Given the critical role of news in today’s world, this project will provide valuable insights into the complex dynamics between media ownership and information dissemination.