Borisov, Alexander
[VerfasserIn]
;
Goldman, Eitan
[Sonstige Person, Familie und Körperschaft];
Gupta, Nandini
[Sonstige Person, Familie und Körperschaft]
Erschienen in:European Corporate Governance Institute (ECGI) - Finance Working Paper ; No. 423/2014
Umfang:
1 Online-Ressource (62 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.2443104
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 20, 2014 erstellt
Beschreibung:
Using an event study, we examine whether the stock market considers corporate lobbying to be a value-enhancing activity. On January 3, 2006, lobbyist Jack Abramoff pleaded guilty to bribing politicians, which generated intense scrutiny of lobbyists, limiting their political influence. Using this event as a negative exogenous shock to the ability of firms to lobby, we show that a firm that spends $100,000 more cumulatively on lobbying in the three years prior to 2006, experiences a loss of about $1.2 million in value around the guilty plea. We also find suggestive evidence that part of the value from lobbying may arise from potentially unethical practices