Nguyen, Bang Dang
[Verfasser:in]
;
Do, Quoc-Anh
[Sonstige Person, Familie und Körperschaft];
Lee, Yen Teik
[Sonstige Person, Familie und Körperschaft];
Nguyen, Kieu-Trang
[Sonstige Person, Familie und Körperschaft]
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments June 22, 2012 erstellt
Beschreibung:
Focusing on former university classmates among corporate directors and U.S. congressmen, and the regression discontinuity design of close Congress elections from 2000 to 2008, we provide robust evidence of the causal impact of social-network based political connections on firm value. The value of political connections varies across politicians, states, and firms remarkably more than previously reported. While connections to powerful senators increase firm value, a challenger's election causes a weighted average treatment effect of -3.24% on connected firms' cumulative abnormal returns surrounding election day. The paper's finding stresses the importance of state-level political connections, especially in more corrupt states