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Determinants of Automobile PAC Contributions to House Incumbents: Own versus Rival Effects

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  • Hersch, Philip L
  • McDougall, Gerald S

Abstract

This paper examines PAC contributions by the Big Three U.S. automakers and Japanese auto dealers to House incumbents. A regression model is estimated where PAC contributions are a function of a firm's own ties to an incumbent's district (as measured by firm employment) and those of rivals. For the Big Three, own and U.S. rival effects are positive. Further, the results do not indicate the presence of a free-rider effect. Employment by a foreign subsidiary has no net effect on U.S. contributions. For the Japanese dealers, Japanese plant employment has a positive impact on contributions, and that of the Big Three a negative. Copyright 2000 by Kluwer Academic Publishers

Suggested Citation

  • Hersch, Philip L & McDougall, Gerald S, 2000. "Determinants of Automobile PAC Contributions to House Incumbents: Own versus Rival Effects," Public Choice, Springer, vol. 104(3-4), pages 329-343, September.
  • Handle: RePEc:kap:pubcho:v:104:y:2000:i:3-4:p:329-43
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    Cited by:

    1. Yik-Pui Low, Steven & Foo, Yee-Boon & Gul, Ferdinand A, 2023. "Corporate lobbying: Resource-seeking or rent-seeking? Evidence from audit fees," Journal of Contemporary Accounting and Economics, Elsevier, vol. 19(1).
    2. Sarasini, Steven, 2013. "Institutional work and climate change: Corporate political action in the Swedish electricity industry," Energy Policy, Elsevier, vol. 56(C), pages 480-489.
    3. Nnadi, Modestus I. & Sorwar, Ghulam & Eskandari, Rasol & Chizema, Amon, 2021. "Political connections and seasoned equity offerings," Journal of Banking & Finance, Elsevier, vol. 133(C).
    4. Tahiru Azaaviele Liedong, 2022. "The Liability of Tribe in Corporate Political Activity: Ethical Implications for Political Contestability," Journal of Business Ethics, Springer, vol. 181(3), pages 623-644, December.
    5. Nell, Phillip C. & Puck, Jonas & Heidenreich, Stefan, 2015. "Strictly limited choice or agency? Institutional duality, legitimacy, and subsidiaries’ political strategies," Journal of World Business, Elsevier, vol. 50(2), pages 302-311.
    6. Arifin, Taufiq & Hasan, Iftekhar & Kabir, Rezaul, 2020. "Transactional and relational approaches to political connections and the cost of debt," Journal of Corporate Finance, Elsevier, vol. 65(C).
    7. Tahiru Azaaviele Liedong & Daniel Aghanya & Tazeeb Rajwani, 2020. "Corporate Political Strategies in Weak Institutional Environments: A Break from Conventions," Journal of Business Ethics, Springer, vol. 161(4), pages 855-876, February.
    8. Rajwani, Tazeeb & Liedong, Tahiru Azaaviele, 2015. "Political activity and firm performance within nonmarket research: A review and international comparative assessment," Journal of World Business, Elsevier, vol. 50(2), pages 273-283.
    9. David Eduardo Cavazos & Matthew A. Rutherford, 2017. "Applying firm attention theory to assess the antecedents of firm participation in regulatory processes," Review of Managerial Science, Springer, vol. 11(2), pages 395-410, March.
    10. Sanjay Patnaik, 2019. "A cross-country study of collective political strategy: Greenhouse gas regulations in the European Union," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(7), pages 1130-1155, September.
    11. Colak, Gonul & Gounopoulos, Dimitrios & Loukopoulos, Panagiotis & Loukopoulos, Georgios, 2021. "Political power, local policy uncertainty and IPO pricing," Journal of Corporate Finance, Elsevier, vol. 67(C).
    12. William P. Wan & Amy J. Hillman, 2006. "One of these things is not like the others: What contributes to dissimilarity among MNE subsidiaries’ political strategy?," Management International Review, Springer, vol. 46(1), pages 85-107, February.
    13. Bonardi, Jean-Philippe & Holburn, Guy & Vanden Bergh, Rick, 2006. "Nonmarket performance: Evidence from U.S. electric utilities," MPRA Paper 14437, University Library of Munich, Germany.

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