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Social Media and Corruption

Author

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  • Ruben Enikolopov
  • Maria Petrova
  • Konstantin Sonin

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.

Suggested Citation

  • Ruben Enikolopov & Maria Petrova & Konstantin Sonin, 2018. "Social Media and Corruption," American Economic Journal: Applied Economics, American Economic Association, vol. 10(1), pages 150-174, January.
  • Handle: RePEc:aea:aejapp:v:10:y:2018:i:1:p:150-74
    Note: DOI: 10.1257/app.20160089
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    Cited by:

    1. Potrafke, Niklas, 2019. "Electoral cycles in perceived corruption: International empirical evidence," Journal of Comparative Economics, Elsevier, vol. 47(1), pages 215-224.
    2. Daron Acemoglu & Tarek A. Hassan & Ahmed Tahoun, 2018. "The Power of the Street: Evidence from Egypt’s Arab Spring," Review of Financial Studies, Society for Financial Studies, vol. 31(1), pages 1-42.
    3. Bjørnskov, Christian & Freytag, Andreas & Gutmann, Jerg, 2018. "Coups, Regime Transition, and the Dynamics of Press Freedom," Working Paper Series 1225, Research Institute of Industrial Economics.
    4. Andrea Geraci & Mattia Nardotto & Tommaso Reggiani & Fabio Sabatini, 2018. "Broadband Internet and Social Capital," MUNI ECON Working Papers 2018-01, Masaryk University, revised Dec 2018.
    5. Günther G. Schulze & Nikita Zakharov, 2018. "Corruption in Russia - Historic Legacy and Systemic Nature," CESifo Working Paper Series 6864, CESifo Group Munich.
    6. repec:ris:apltrx:0344 is not listed on IDEAS
    7. Chandan K. Jha & Oasis Kodila-Tedika, 2019. "Does Social Media Promote Democracy? Some Empirical Evidence," Working Papers of the African Governance and Development Institute. 19/031, African Governance and Development Institute..
    8. repec:eee:jeeman:v:91:y:2018:i:c:p:184-202 is not listed on IDEAS

    More about this item

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • L82 - Industrial Organization - - Industry Studies: Services - - - Entertainment; Media
    • P23 - Economic Systems - - Socialist Systems and Transition Economies - - - Factor and Product Markets; Industry Studies; Population
    • P26 - Economic Systems - - Socialist Systems and Transition Economies - - - Political Economy
    • P34 - Economic Systems - - Socialist Institutions and Their Transitions - - - Finance
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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