We analyze the timing of news articles alleging stock price manipulation in the Indian stock market to uncover their significant impact on financial outcomes. Specifically, we document substantial negative cumulative abnormal returns for firms implicated in such articles, alongside heightened trading activity immediately following publication. These effects persist across varying event windows, indicating that the market reacts to new and credible information provided by media scrutiny. Furthermore, we identify notable spillover effects on director-interlocked firms, with the impact being particularly pronounced when interlocked directors hold influential positions, such as executive roles or committee memberships. Our findings extend the literature on media as an external governance mechanism by illustrating how media scrutiny influences firm valuation, even in the absence of direct regulatory action. These results have significant managerial and policy implications, including the need for enhanced regulatory surveillance, stronger governance frameworks, and the promotion of media integrity as a tool to foster market transparency and investor confidence.
