Legislators' demand for firms' financial statements: evidence from US congressional redistricting events

• 成果类型: Article; Early Access
• 署名作者: Ma, Matthew; Pan, Jing; Rouen, Ethan; Wellman, Laura
• 署名单位: Rutgers University System; Rutgers University Camden; Rutgers University New Brunswick; Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Harvard University; University of Oregon
• 刊物名称: REVIEW OF ACCOUNTING STUDIES
• ISSN/ISSBN: 1380-6653
• DOI: 10.1007/s11142-025-09891-7
• 发表日期: 2025
• 关键词: stock investments; uncertainty; connections; search; MARKET

摘要

We investigate whether U.S. House representatives and their staff seek financial information from constituent firms to inform their legislative decisions. We exploit shifts in U.S. congressional districts (i.e., the reconfiguration of federal district lines or redistricting) that introduce new constituent firms to legislators' districts. To the extent that legislators and their staff collect and rely on firms' financial statement information, we expect that a change in representation as a result of redistricting will result in a significant and observable change in searches for information about new constituent firms. Our evidence supports this prediction. We also find that the timing of searching coincides with legislators' roll call votes, particularly ahead of more controversial bills and for bills lobbied by sample firms. Finally, we find that new constituent firms respond to increased information demands after a redistricting event by supplying more policy-relevant disclosures and increasing lobbying.