All the president's friends: Political access and firm value
| Autor: | Jeffrey R. Brown, Jiekun Huang |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
040101 forestry
Economics and Econometrics Labour economics 050208 finance Presidential election business.industry Strategy and Management 05 social sciences Enterprise value 04 agricultural and veterinary sciences Public relations Politics Accounting 0502 economics and business 0401 agriculture forestry and fisheries Business Finance Stock (geology) |
| Zdroj: | Journal of Financial Economics. 138:415-431 |
| ISSN: | 0304-405X |
| DOI: | 10.1016/j.jfineco.2020.05.004 |
| Popis: | Using data on White House visitors from 2009 through 2015, we find that corporate executives’ meetings with key policymakers are associated with positive abnormal stock returns. We also find evidence suggesting that firms receive more government contracts and are more likely to receive regulatory relief (as measured by the tone of regulatory news) following meetings with federal government officials. Using the 2016 presidential election as a shock to political access, we find that firms with access to the Obama administration experience significantly lower stock returns following the release of the election result than otherwise similar firms. Overall, our results provide evidence suggesting that political access is of significant value to corporations. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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