Banklash: How Media Coverage of Bank Scandals Moves Mass Preferences on Financial Regulation

Abstract

Financial regulation is often adopted in the wake of scandals and crises. Yet political science has little to say about the political effects of corporate scandals. We break that silence, asking whether exposure to news coverage of bank scandals changes the preferences of voters for financial regulation. Drawing from the literatures on media influence and public opinion, we argue that news coverage of bank scandals should increase voters’ appetite for regulation. We test our hypothesis with data from six countries, using original nationally representative panel surveys with embedded experiments (total N = 27,673). Our pooled and country-specific analyses largely support our expectation that exposure to news coverage of scandals increases regulatory preferences. We reproduce this finding in a separate survey wave, using different scandals than in our original analysis. These results contribute to studies on media influence on public opinion, the political significance of scandals, and the political economy of regulation.