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Campaign Contributions over CEOs' Careers

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Listed:
  • Adam Fremeth
  • Brian Kelleher Richter
  • Brandon Schaufele

Abstract

Individuals dominate money in politics, accounting for over 90 percent of campaign contributions, yet studies of drivers of individuals? giving are scarce. We analyze data on all contributions made between 1991 and 2008 by all 1,556 people who became S&P 500 CEOs during that interval. We exploit variation in leadership status over these individuals? careers to identify that being an S&P 500 CEO causes a $4,029 or 137 percent jump per election cycle in personal giving. While some fraction of CEOs? contributions can be attributed to long-standing preferences, the striking changes in behavior cannot be explained by these factors alone.

Suggested Citation

  • Adam Fremeth & Brian Kelleher Richter & Brandon Schaufele, 2013. "Campaign Contributions over CEOs' Careers," American Economic Journal: Applied Economics, American Economic Association, vol. 5(3), pages 170-188, July.
  • Handle: RePEc:aea:aejapp:v:5:y:2013:i:3:p:170-88
    Note: DOI: 10.1257/app.5.3.170
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    References listed on IDEAS

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    1. Kaplan, Steven N. & Minton, Bernadette A., 2006. "How Has CEO Turnover Changed? Increasingly Performance Sensitive Boards and Increasingly Uneasy CEOs," Working Paper Series 2006-7, Ohio State University, Charles A. Dice Center for Research in Financial Economics.
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    Cited by:

    1. Niebler, Sarah & Urban, Carly, 2017. "Does negative advertising affect giving behavior? Evidence from campaign contributions," Journal of Public Economics, Elsevier, vol. 146(C), pages 15-26.

    More about this item

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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