American Economic Journal:
Applied Economics
ISSN 1945-7782 (Print) | ISSN 1945-7790 (Online)
Social Media and Corruption
American Economic Journal: Applied Economics
vol. 10,
no. 1, January 2018
(pp. 150–74)
(Complimentary)
Abstract
Does new media promote accountability in nondemocratic countries, where offline media is often suppressed? We show that blog posts, which exposed corruption in Russian state-controlled companies, had a negative causal impact on their market returns. For identification, we exploit the precise timing of blog posts by looking at within-day results with company-day fixed effects. Furthermore, we show that the posts are ultimately associated with higher management turnover and less minority shareholder conflicts. Taken together, our results suggest that social media can discipline corruption even in a country with limited political competition and heavily censored traditional media.Citation
Enikolopov, Ruben, Maria Petrova, and Konstantin Sonin. 2018. "Social Media and Corruption." American Economic Journal: Applied Economics, 10 (1): 150–74. DOI: 10.1257/app.20160089Additional Materials
JEL Classification
- G14 Information and Market Efficiency; Event Studies; Insider Trading
- G34 Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
- L82 Entertainment; Media
- P23 Socialist Systems and Transitional Economies: Factor and Product Markets; Industry Studies; Population
- P26 Socialist Systems and Transitional Economies: Political Economy; Property Rights
- P34 Socialist Institutions and Their Transitions: Financial Economics
- Z13 Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification
There are no comments for this article.
Login to Comment