Do Politically Connected Boards Affect Firm Value?

• 成果类型: Article
• 署名作者: Goldman, Eitan; Rocholl, Joerg; So, Jongil
• 署名单位: Indiana University System; Indiana University Bloomington; European School of Management & Technology; University of North Carolina; University of North Carolina Chapel Hill
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhn088
• 发表日期: 2009
• 页码: 2331
• 关键词: DIRECTORS; BUSY

摘要

This article explores whether political connections are important in the United States. The article uses an original hand-collected data set on the political connections of board members of S&P 500 companies to sort companies into those connected to the Republican Party and those connected to the Democratic Party. The analysis shows a positive abnormal stock return following the announcement of the nomination of a politically connected individual to the board. This article also analyzes the stock-price response to the Republican win of the 2000 presidential election and finds that companies connected to the Republican Party increase in value, and companies connected to the Democratic Party decrease in value.