Journal ArticleDOI
Politically Connected Boards of Directors and The Allocation of Procurement Contracts
TLDR
This article analyzed whether political connections of the board of directors of publicly traded companies in the USA affect the allocation of government procurement contracts and found that companies with boards connected to the winning (losing) party experienced a significant and large increase (decrease) in procurement contracts after the election.Abstract:
This article analyzes whether political connections of the board of directors of publicly traded companies in the USA affect the allocation of government procurement contracts. It focuses on the change in control of both House and Senate following the 1994 election and finds that companies with boards connected to the winning (losing) party experience a significant and large increase (decrease) in procurement contracts after the election. The results remain significant after controlling for industry classifications as well as for several other company characteristics. The findings highlight one of the main avenues through which corporate political connections add value to US companies. Copyright 2013, Oxford University Press.read more
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Political connections and the cost of bank loans
TL;DR: In this article, the authors analyzed whether the political connections of listed firms in the United States affect the cost and terms of loan contracts and found that the cost of bank loans is significantly lower for companies that have board members with political ties.
Journal ArticleDOI
Customer concentration risk and the cost of equity capital
TL;DR: In this paper, the authors investigated the relation between customer concentration and a supplier's cost of equity capital and found that a more concentrated customer base increases the risk of a supplier, which results in a higher cost of capital.
Journal ArticleDOI
The value of local political connections in a low.corruption environment.
TL;DR: In this paper, the authors use exogenous changes in Danish local municipality sizes to identify a large positive effect of political power on the profitability of firms related by family to local politicians.
Journal ArticleDOI
Corporate Political Connections and Tax Aggressiveness
Chansog Kim,Liandong Zhang +1 more
TL;DR: In this article, the relation between corporate political connections and tax aggressiveness was investigated and it was shown that politically connected firms are more tax aggressive than non-connected firms, after controlling for other determinants of tax aggression, industry and year fixed effects, and the endogenous choice of being politically connected.
Journal ArticleDOI
The dark side of board political capital: enabling blockholder rent appropriation
TL;DR: In this paper, the authors developed a theory of resource dependence that boards of directors with political capital can benefit focal firms by reducing uncertainty and providing preferential resources, and developed theory reg...
References
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Journal ArticleDOI
The Modern Industrial Revolution, Exit, and the Failure of Internal Control Systems
TL;DR: The last two decades indicate corporate internal control systems have failed to deal effectively with these changes, especially slow growth and the requirement for exit as mentioned in this paper, which is a major challenge for Western firms and political systems as these forces continue to work their way through the worldwide economy.
ReportDOI
Protection For Sale
Gene M. Grossman,Elhanan Helpman +1 more
TL;DR: In this paper, the authors developed a model in which special interest groups make political contributions in order to influence an incumbent government's choice of trade policy, and studied the structure of protection that emerges in the political equilibrium and the contributions by different lobbies that support the policy outcome.
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Estimating the Value of Political Connections
TL;DR: In this article, the authors used the Jakarta Stock Exchange's reaction to news about former President Suharto's health to assess the value of political connections and found that as much as a quarter of a firm's share price may be accounted for by political connections.
Journal ArticleDOI
Politically connected firms
TL;DR: In this article, an examination of firms in 47 countries showed a widespread overlap of controlling shareholders and top officers who are connected with national parliaments or governments, particularly in countries with higher levels of corruption, with barriers to foreign investment, and with more transparent systems.
Journal ArticleDOI
Who Makes Acquisitions? CEO Overconfidence and the Market's Reaction
Ulrike Malmendier,Geoffrey Tate +1 more
TL;DR: In this article, the authors analyzed the impact of CEO overconfidence on mergers and acquisitions and found that overconfident CEOs over-estimate their ability to generate returns, both in their current firm and in potential takeover targets.