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Corporate Lobbying Revisited

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  • Kim, Jin-Hyuk

Abstract

Using a panel data of S&P 500 Index firms covering 1998-2004, this paper compares the determinants of lobbying expenditures and campaign contributions and estimates the returns to lobbying as assessed by the financial market. Lobbying depends more on managerial incentives and protection needs beyond industry structures than contributions do. Lobbying also has a positive effect on the firm's equity returns relative to the market and, to a lesser degree, relative to its industry.

Suggested Citation

  • Kim, Jin-Hyuk, 2008. "Corporate Lobbying Revisited," MPRA Paper 51396, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:51396
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    References listed on IDEAS

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    Cited by:

    1. 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.
    2. Unsal, Omer & Hassan, M. Kabir & Zirek, Duygu, 2016. "Corporate lobbying, CEO political ideology and firm performance," Journal of Corporate Finance, Elsevier, vol. 38(C), pages 126-149.
    3. Adelino, Manuel & Dinc, I. Serdar, 2014. "Corporate distress and lobbying: Evidence from the Stimulus Act," Journal of Financial Economics, Elsevier, vol. 114(2), pages 256-272.
    4. Lawton, Thomas & Rajwani, Tazeeb & Doh, Jonathan, 2013. "The antecedents of political capabilities: A study of ownership, cross-border activity and organization at legacy airlines in a deregulatory context," International Business Review, Elsevier, vol. 22(1), pages 228-242.
    5. repec:eee:jaecon:v:64:y:2017:i:1:p:98-122 is not listed on IDEAS
    6. Weymouth Stephen, 2013. "Firm lobbying and influence in developing countries: a multilevel approach," Business and Politics, De Gruyter, vol. 14(4), pages 1-26, January.
    7. repec:spr:manint:v:58:y:2018:i:5:d:10.1007_s11575-018-0350-6 is not listed on IDEAS
    8. repec:spr:manint:v:55:y:2015:i:6:d:10.1007_s11575-015-0248-5 is not listed on IDEAS
    9. Hui Chen & David Parsley & Ya-Wen Yang, 2015. "Corporate Lobbying and Firm Performance," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 42(3-4), pages 444-481, April.
    10. repec:kap:jbuset:v:143:y:2017:i:4:d:10.1007_s10551-016-3077-y is not listed on IDEAS
    11. Ozer, Mine, 2010. "Top management teams and corporate political activity: Do top management teams have influence on corporate political activity?," Journal of Business Research, Elsevier, vol. 63(11), pages 1196-1201, November.
    12. Wöcke, Albert & Moodley, Terence, 2015. "Corporate political strategy and liability of foreignness: Similarities and differences between local and foreign firms in the South African Health Sector," International Business Review, Elsevier, vol. 24(4), pages 700-709.
    13. repec:eee:reveco:v:59:y:2019:i:c:p:548-565 is not listed on IDEAS

    More about this item

    Keywords

    corporate lobbying; campaign contributions; stock returns;

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • M2 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Economics

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