Publication Type
PhD Dissertation
Version
publishedVersion
Publication Date
3-2026
Abstract
I provide the first evidence on the role of fact-checkers as a new information intermediary in capital markets. Using data from four major fact-checkers in the United States, I find that profit-oriented fact-checkers are more likely to cover firms. Furthermore, fact-checkers tend to focus on firms with higher visibility, greater proportions of retail investors, and aligned political ideologies. These findings are consistent with fact-checkers’ incentives to generate revenue and to establish a reputation for impactful and high-quality fact-checking. A difference-in-differences analysis based on PolitiFact’s transition from a profit oriented to a not-for-profit organization further demonstrates that business incentives play an important role in coverage decisions. I then examine changes in firms’ information environments following fact-checker coverage and find that firms issue less voluntary disclosure, especially when a claim turns out to be false. This suggests that external fact-checking reduces the need of costly disclosure. Finally, compared to firms with high analyst following, those with low analyst following experience liquidity improvements after fact-checker coverage, suggesting that fact-checking improves the information environment for more opaque firms.
Keywords
Fact-Checker, Misinformation, Disclosure
Degree Awarded
PhD in Accounting
Discipline
Accounting
Supervisor(s)
LOU, Yun
First Page
1
Last Page
83
Publisher
Singapore Management University
City or Country
Singapore
Citation
ZHAO, Yuan.
The role of fact-checkers in capital markets. (2026). 1-83.
Available at: https://ink.library.smu.edu.sg/etd_coll/846
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.