Campaign Contributions over CEOs’ Careers
Individuals dominate money in politics, accounting for over 90% of campaign contributions, but studies of individuals’ giving are scarce. We show that individuals increase their personal contributions dramatically when they assume leadership roles at organizations such as labor unions, non-profits, and firms. Using a newly constructed dataset that focuses on personal contributions, we exploit variation in the leadership status of all 2,198 individuals who were S&P 500 CEOs at any point between 1991 and 2008 to identify a $4,000 jump in personal political giving when individuals become CEOs. Despite giving more money to more candidates, more political action committees (PACs), and more parties, active CEOs’ partisan orientations remain largely unchanged. Falsification tests of an underlying identification assumption demonstrate that these patterns hold whether an individual is promoted to CEO internally or appointed externally. While some fraction of CEOs’ contributions can be attributed to long-standing preferences, willingness, and ability to contribute, the striking change in behavior we identify cannot be explained by these factors alone.
|Date of creation:||2012|
|Contact details of provider:|| Postal: PO Box 450, Station A, Ottawa, Ontario, K1N 6N5|
Phone: (613) 562-5753
Fax: (613) 562-5999
Web page: http://www.socialsciences.uottawa.ca/eco/eng/index.asp
More information through EDIRC
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.:
- Ovtchinnikov, Alexei V. & Pantaleoni, Eva, 2012. "Individual political contributions and firm performance," Journal of Financial Economics, Elsevier, vol. 105(2), pages 367-392.
- Eric Guthey & Brad Jackson, 2005. "CEO Portraits and the Authenticity Paradox," Journal of Management Studies, Wiley Blackwell, vol. 42(5), pages 1057-1082, 07.
- Silberman, Jonathan I & Durden, Garey C, 1976. "Determining Legislative Preferences on the Minimum Wage: An Economic Approach," Journal of Political Economy, University of Chicago Press, vol. 84(2), pages 317-329, April.
- Chappell, Henry W, Jr, 1982. "Campaign Contributions and Congressional Voting: A Simultaneous Probit-Tobit Model," The Review of Economics and Statistics, MIT Press, vol. 64(1), pages 77-83, February.
- Steven N. Kaplan & Bernadette Minton, 2006.
"How has CEO Turnover Changed? Increasingly Performance Sensitive Boards and Increasingly Uneasy CEOs,"
NBER Working Papers
12465, National Bureau of Economic Research, Inc.
- 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.
- Bandiera, Oriana & Barankay, Iwan & Rasul, Imran, 2009.
"Social Incentives in the Workplace,"
IZA Discussion Papers
4190, Institute for the Study of Labor (IZA).
- Joulfaian, David & Marlow, Michael L, 1991. "Incentives and Political Contributions," Public Choice, Springer, vol. 69(3), pages 351-355, March.
- Meer, Jonathan & Rosen, Harvey S., 2011.
"The ABCs of charitable solicitation,"
Journal of Public Economics,
Elsevier, vol. 95(5), pages 363-371.
- Aggarwal Rajesh K. & Meschke Felix & Wang Tracy Yue, 2012. "Corporate Political Donations: Investment or Agency?," Business and Politics, De Gruyter, vol. 14(1), pages 1-40, April.
- Milyo Jeffrey & Primo David & Groseclose Timothy, 2000. "Corporate PAC Campaign Contributions in Perspective," Business and Politics, De Gruyter, vol. 2(1), pages 1-15, April.
This item is featured on the following reading lists or Wikipedia pages:
- Campaign Contributions over CEOs' Careers (AEJ:AE 2013) in ReplicationWiki
When requesting a correction, please mention this item's handle: RePEc:ott:wpaper:1203e. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Diane Ritchot)
If references are entirely missing, you can add them using this form.