Taxpayers lose in the bond market when local newspapers close
Published: June 5, 2018 / Author: Bloomberg Businessweek
Finance professor Paul Gao‘s research on the relationship between local newspaper closures and the cost of municipal bonds was featured in Bloomberg Businessweek. Read the full story here.
A study by economists from the University of Notre Dame and the University of Illinois at Chicago found that investors demand higher yields to buy the bonds of governments in metropolitan areas where newspapers have shut down. They argue that’s likely because reducing the number of reporters rooting out mismanagement and corruption allows governments to run less efficiently, which is reflected in bond-market prices.
Related Stories

Faculty in the Media
Observers of workplace mistreatment react as the victims

Faculty in the Media
Why companies with more female board members have better workplace safety

Faculty in the Media
Ask the experts: Jason Reed