| dc.description.abstract | This dissertation sheds light on the relationship between ownership and media management, particularly focusing on the impacts of hedge fund ownership in journalism. While the effects of hedge fund ownership have been studied across various industries, they have not been systematically examined in the field of journalism.
Some research has looked at the concurrent effects of ownership by activist hedge funds in general or in other target industries such as real estate and nursing homes (Morgenson & Rosner, 2023; Stulz, 2007), but none of it has focused on the U.S. daily newspaper industry. This issue only recently caught the attention of the industry when Tribune Publishing was acquired by Alden Global Capital in 2021 (Coppins, 2021). While a few studies have investigated the financial impacts of profit margin requirements in the newspaper industry from the stock market (Beam, 2002; Demers, 1996), or the effects of private investors on media management decisions (Picard, 2006; Lacy, Shaver, & Cyr, 1996; Soloski, 2013), none of them have specifically addressed the influence of hedge fund ownership.
Two studies were conducted in this dissertation, together providing a comprehensive picture. Study One examined financial issues, while Study Two explored human issues, offering insights not only into why the newspaper industry became vulnerable to hedge fund attacks but also into the concurrent management struggles under full hedge fund governance, thus extending the threats to the role of journalism in democracy. Specifically, Study One was a longitudinal study spanning from 2007 to 2022, analyzing 55 annual reports from four newspaper companies over 16 years, including Gannett, Lee Enterprises, Tribune Publishing, and McClatchy. Study Two conducted in-depth interviews, targeting individuals in management positions at newspapers acquired by hedge funds, namely Tribune Publishing (acquired by Alden in 2021) and McClatchy (acquired by Chatham in 2019). A total of 21 participants were successfully recruited, and the data showed saturation, indicating that no more new viewpoints emerged.
This study also contributes to the research on media firm ownership. The digital age eroded the financial security of news media firms, which have for two decades failed to achieve a sustainable business model in the public ownership era (Hollifield, 2012; Picard, 2010; Chyi & Ng, 2020), leaving them open to a new kind of ownership that no longer values the journalism product and professional values—the hedge fund ownership era. | en_US |
