The (Mis)Allocation of Corporate News Staff working paper 2024-47 Xing Guo, Alistair Macaulay, Wenting Song We study how the distribution of information supply by the news media affects the macroeconomy. We find that media coverage focuses particularly on the largest firms, and that firms’ equity financing and investment increase after media coverage. But these equity and investment responses are largest among small, rarely covered firms. Our quantitative studies highlight that the aggregate effects of media coverage depend crucially on how that coverage is allocated. Content Type(s): Staff research, Staff working papers JEL Code(s): D, D2, D22, D6, D61, L, L1, L11, L2, L20 Research Theme(s): Financial markets and funds management, Market functioning, Financial system, Financial institutions and intermediation, Models and tools, Econometric, statistical and computational methods, Economic models