This paper investigates the press’s role as a monitor or “watchdog” for
accounting fraud. I find that the press fulfills this role by rebroadcasting
information from other information intermediaries (analysts, auditors, and
lawsuits) and by undertaking original investigation and analysis. Articles based
on original analysis provide new information to the markets while those that
rebroadcast allegations from other intermediaries do not. Consistent with a
dual role for the press, I find that business-oriented press is more likely to
undertake original analysis while nonbusiness periodicals focus primarily on
rebroadcasting. I also investigate the determinates of press coverage, finding
systematic biases in the types of firms and frauds for which articles are published.
In general, the press covers firms and frauds that will be of interest
to a broad set of readers and situations that are lower cost to identify and
investigate.