Journal ArticleDOI
Determinants and Effects of Corporate Lobbying
TLDR
The authors examined the determinants and value effects of corporate lobbying, controlling for corporate political action committee (PAC) campaign contributions, and found that firms with greater potential payoffs from favorable policy and regulations lobby most actively, and that managers often utilize both lobbying and campaign contribution channels to influence the political climate affecting the firm.Abstract:
We examine the determinants and value effects of corporate lobbying, controlling for corporate political action committee (PAC) campaign contributions. We find evidence that firms with greater potential payoffs from favorable policy and regulations lobby most actively, and that managers often utilize both lobbying and campaign contribution channels to influence the political climate affecting the firm. We also find that shareholders value the lobbying activities pursued by management on their behalf, particularly if the firm does not have a PAC that contributed to an election campaign. The results are robust to a number of tests designed to mitigate potential omitted-variable and self-selection bias. [ABSTRACT FROM AUTHOR]read more
Citations
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Journal ArticleDOI
Mixing Business With Politics: A Meta-Analysis of the Antecedents and Outcomes of Corporate Political Activity
TL;DR: In this paper, the authors use meta-analysis to aggregate findings involving two sets of research questions: (1) what factors and to what extent do these factors influence firms to engage in CPA, and (2) does CPA in turn affect firm performance and, if so, to what degree.
Journal ArticleDOI
Do Socially Responsible Firms Pay More Taxes
TL;DR: In this paper, the relation between corporate tax payments and corporate social responsibility was investigated, and it was shown that tax payments act as complements or substitutes for corpora' social responsibility.
Journal ArticleDOI
Corporate lobbying, political connections, and the bailout of banks
TL;DR: This paper found that politically engaged firms were not only more likely to receive TARP funds, but also received a greater amount of TARP support and received the support earlier than firms that were not politically involved.
Journal ArticleDOI
Corporate Policies of Republican Managers
TL;DR: In this article, the authors demonstrate that personal political preferences of corporate managers influence corporate policies, and that managers who are likely to have conservative personal ideologies adopt and maintain more conservative corporate policies.
Journal ArticleDOI
Corporate Policies of Republican Managers
TL;DR: In this article, the authors demonstrate that personal political preferences of corporate managers influence corporate policies, and that managers who are likely to have conservative personal ideologies adopt and maintain more conservative corporate policies.
References
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Journal ArticleDOI
Common risk factors in the returns on stocks and bonds
Eugene F. Fama,Kenneth R. French +1 more
TL;DR: In this article, the authors identify five common risk factors in the returns on stocks and bonds, including three stock-market factors: an overall market factor and factors related to firm size and book-to-market equity.
Journal ArticleDOI
Sample Selection Bias as a Specification Error
TL;DR: In this article, the bias that results from using non-randomly selected samples to estimate behavioral relationships as an ordinary specification error or "omitted variables" bias is discussed, and the asymptotic distribution of the estimator is derived.
ReportDOI
A simple, positive semi-definite, heteroskedasticity and autocorrelation consistent covariance matrix
Whitney K. Newey,Kenneth D. West +1 more
TL;DR: In this article, a simple method of calculating a heteroskedasticity and autocorrelation consistent covariance matrix that is positive semi-definite by construction is described.
Posted Content
Agency Costs of Free Cash Flow, Corporate Finance, and Takeovers
TL;DR: In this paper, the benefits of debt in reducing agency costs of free cash flows, how debt can substitute for dividends, why diversification programs are more likely to generate losses than takeovers or expansion in the same line of business or liquidationmotivated takeovers, and why the factors generating takeover activity in such diverse activities as broadcasting and tobacco are similar to those in oil.
Book
The Theory of Economic Regulation
TL;DR: In this article, the authors argue that regulation is acquired by the industry and is designed and operated primarily for its benefit, and that the state has one basic resource which in pure principle is not shared with even the mightiest of its citizens.