Ma, Zhiming; Stice, Derrald; Stice, Han; Zhang, Yue - 2022
We examine changes in bank loan contracts after borrowers experience a nearby local newspaper closure. Compared to a … sample of control firms, we find that the closure of a local newspaper leads to higher interest spreads for borrowers. The … effect is stronger when the local newspaper is more important for information generation, when the borrower’s information …