This paper investigates whether newspapers report more favorably about advertising corporate clients than about other firms. Our identification strategy based on high-dimensional fixed effects and high frequency advertising data shows that advertising leads to more positive press coverage. This...

Existing theoretical and empirical studies on Media Bias are subjects of controversial discussions in the literature. However, scientific literatures on Media Bias establish empirical evidence for a positive impact of advertising volume on media coverage. To get in line with the debated...

This paper investigates the existence of a possible media bias by analyzing the impact of automobile manufacturer’s advertisements on automobile reviews in a leading German car magazine. By accounting for both endogeneity and sample selection using a two-step procedure, we find a positive...