Individual political contributions and firm performance

• 成果类型: Article
• 署名作者: Ovtchinnikov, Alexei V.; Pantaleoni, Eva
• 署名单位: Vanderbilt University; Vanderbilt University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2012.03.007
• 发表日期: 2012
• 页码: 367-392
• 关键词: Political contributions; firm performance; Firm value

摘要

We present evidence that individuals make political contributions strategically by targeting politicians with power to affect their economic well-being. Individuals in Congressional districts with greater industry clustering choose to support politicians with jurisdiction over the industry. Importantly, individual political contributions are associated with improvements in operating performance of firms in industry clusters. The relation between contributions and firm performance is strongest for poorly performing firms, firms closer to financial distress, and for contributions in close elections. The results imply that individual political contributions are valuable to firms, especially during bad economic times. (C) 2012 Elsevier B.V. All rights reserved.