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Sudden Deaths: Taking Stock of Geographic Ties

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Author Info
Faccio, Mara
Parsley, Davie

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Abstract

Analysis of a world-wide sample of sudden deaths of politicians reveals a market adjusted 1.7% decline in the value of companies headquartered in the politician’s home town. The decline in value is followed by a drop in the rate of growth in sales and access to credit. Our results are particularly pronounced for family firms, firms with high growth prospects, firms in industries over which the politician has jurisdiction, and firms headquartered in highly corrupt countries.

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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 6042.

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Date of creation: Oct 2007
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Handle: RePEc:pra:mprapa:6042

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G3 - Financial Economics - - Corporate Finance and Governance

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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Jay Pil Choi & Marcel Thum, 2007. "The Economics of Politically Connected Firms," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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