University of Leeds

Institute of Communication Studies: ma Dissertation

The Business/Financial Journalism:

The Role and The Ways to Be Independent from The News Sources

Shigeru Endo

(MA in International Journalism)

1 September, 2006

CONTENTS

Acknowledgements 4

Abstract 5

Chapter 1 INTRODUCTION 6

Chapter 2 LITERATURE REVIEW 12

1. The Nature of Corporations 12

2-1-1 The Pursuit of Profit 12

2-1-2 Perception Management and PR 13

2-1-3 The Presence of Corporations Is Bigger 17

2-2 The Role of Business/Financial Journalism 18

2-2-1 Journalism and Democracy 19

2-2-2 Business/Financial Journalism 20

2-2-3 Problems of Business/Financial Journalism 21

2-2-4 The Way to Be Independent 24

2-3 Propaganda Model 25

2-3-1 Ownership 26

2-3-2 Advertising 26

2-3-3 Limited News Sources 27

2-3-4 Flak 28

2-3-5 Anti-Communism 29

2-3-6 The Model Is Still Applicable 29

2-3-7 Criticism 30

Chapter 3 BACKGROUNDS 32

1. The Frauds 32

1. Enron 32

2. WorldCom and Livedoor 35

3. The Sarbanes – Oxley Act 36

3-2 The Cases of Insider Trading in News Organisation 37

3-2-1 The Mirror 37

3-2-2 Nikkei 39

3-2-3 Codes of Conduct 40

Chapter 4 METHODOLOGY 42

1. Interviews 43

2. Questionnaires 44

3. Limitations and Difficulties 45

Chapter 5 FINDINGS 46

1. Role of Business/Financial Journalism 46

2. The Problems in Reality 53

5-2-1 Narrow Angles 53

5-2-2 Lack of Knowledge 55

5-2-3 Editors and Journalists Relationships 55

5-2-4 Concerns on Regulations 57

5-2-5 Routine 58

5-2-6 Unfairness 59

5-3 The Reason Why Business/Financial Journalism Failed to Detect The Frauds such as Enron and WorldCom 60

5-4 Power of PR 62

5-5 Business Aspects of News Organisation 63

5-6 The Way to Avoid The Manipulation from The Sources 65

5-6-1 Education 65

5-6-2 Multiple Souces 67

5-6-3 Transparency in Reports 69

5-6-4 Strong Attitude to Complaints 71

5-6-5 Codes of Practice 72

Chapter 6 CONCLUSION 76

BIBLIOGRAPHY 79

LIST OF THE INTERVIEWEES 84

Appendix 85