The value of connections in turbulent times: Evidence from the United States

• 成果类型: Article
• 署名作者: Acemoglu, Daron; Johnson, Simon; Kermani, Amir; Kwak, James; Mitton, Todd
• 署名单位: Massachusetts Institute of Technology (MIT); Massachusetts Institute of Technology (MIT); University of California System; University of California Berkeley; University of Connecticut; Brigham Young University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2015.10.001
• 发表日期: 2016
• 页码: 368-391
• 关键词: political connections; Economic crises; institutions

摘要

The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a prior connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner's confirmation might be derailed by tax issues. Personal connections to top executive branch officials can matter greatly even in a country with strong overall institutions, at least during a time of acute financial crisis and heightened policy discretion. (C) 2016 Elsevier B.V. All rights reserved.