Washington Policy Analysts and the Propagation of Political Information

• 成果类型: Article
• 署名作者: Bradley, Daniel; Gokkaya, Sinan; Liu, Xi; Michaely, Roni
• 署名单位: State University System of Florida; University of South Florida; University System of Ohio; Ohio University; University System of Ohio; Miami University; University of Hong Kong; European Corporate Governance Institute
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2023.4919
• 发表日期: 2024
• 页码: 5246-5269
• 关键词: policy analysts; policy research; political uncertainty; trading commissions; Institutional trading; Sell-side analysts

摘要

Washington policy research analysts (WAs) monitor political developments and produce research to interpret the impact of these events. We find institutional clients channel more commissions to brokerages providing policy research and commission-allocating institutional clients generate superior returns on their politically sensitive trades. We find that WA policy research reports are associated with significant price and volume reactions. Finally, we find sell-side analysts with access to WA issue superior stock recommendations on politically sensitive stocks. These effects are particularly acute during periods of high political uncertainty. Overall, we uncover a unique and an important conduit through which political information filters into asset prices.