Political connections and preferential access to finance : The role of campaign contributions
TLDR
This paper found that companies that provided contributions to elected federal deputies experienced higher stock returns than firms that did not around the 1998 and 2002 elections, suggesting that contributions help shape policy on a firm-specific basis.About:
This article is published in Journal of Financial Economics.The article was published on 2008-06-01 and is currently open access. It has received 1061 citations till now. The article focuses on the topics: Access to finance & Gross domestic product.read more
Citations
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Corporate Governance, Economic Entrenchment, and Growth
TL;DR: The economic entrenchment of large corporations is studied in this article, where the authors posit a relationship between the distribution of corporate control and institutional development that generates and preserves economic entropy.
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Do Politically Connected Boards Affect Firm Value
TL;DR: In countries with a weak legal system and a high level of corruption, it has been shown that political connections are valuable to a corporation as mentioned in this paper, which is also true in the U.S., which has well-developed financial markets as well as a strong legal system.
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Corporate Philanthropy and Corporate Financial Performance: The Roles of Stakeholder Response and Political Access
Heli Wang,Cuili Qian +1 more
TL;DR: Corporate philanthropy is expected to positively affect firm financial performance because it helps firms gain sociopolitical legitimacy, which enables them to elicit positive stakeholder responses as mentioned in this paper, which in turn helps them gain positive investor responses.
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Do Politically Connected Boards Affect Firm Value
TL;DR: In this paper, the authors used an original hand-collected data set on the political connections of board members of S&P 500 companies to sort companies into those connected to the Republican Party and those connected with the Democratic Party.
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Corporate governance in emerging markets: A survey
TL;DR: A review of recent research on corporate governance with a special focus on emerging markets is presented in this paper, where the authors find that better corporate governance benefit firms through greater access to financing, lower cost of capital, better performance, and more favorable treatment of all stakeholders.
References
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A Heteroskedasticity-Consistent Covariance Matrix Estimator and a Direct Test for Heteroskedasticity
TL;DR: In this article, a parameter covariance matrix estimator which is consistent even when the disturbances of a linear regression model are heteroskedastic is presented, which does not depend on a formal model of the structure of the heteroSkewedness.
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What Do We Know about Capital Structure? Some Evidence from International Data
Raghuram G. Rajan,Luigi Zingales +1 more
TL;DR: In this paper, the authors investigate the determinants of capital structure choice by analyzing the financing decisions of public firms in the major industrialized countries and find that factors identified by previous studies as correlated in the cross-section with firm leverage in the United States, are similarly correlated in other countries as well.
Posted Content
The Political Economy of the Rent-Seeking Society
TL;DR: In this article, the authors studied the impact of competitive import licenses on the economy and the relationship between welfare cost of quantitative restrictions and tariff equivalents, and showed that the effect of wage legislation on equilibrium levels of unemployment.
Posted Content
Event Studies in Economics and Finance
TL;DR: In this article, event study methods are described including some of the potential complications of the approach, and an example is included to illustrate the approach and to illustrate how the impact of an economic event can be measured by examining security prices surrounding the event.
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Politicians and Firms
Andrei Shleifer,Robert W. Vishny +1 more
TL;DR: This article present a model of bargaining between politicians and managers that explains many stylized facts about the behavior of state firms, their commercialization, and privatization, including subsidies to public enterprises and bribes from managers to politicians.