A Dead Senator Tells No Lies: Seniority and the Distribution of Federal Benefits

Roberts, Bryan R.

doi:10.2307/2111510

Cited by 407 publications

(253 citation statements)

References 50 publications

(36 reference statements)

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“…Combined with simultaneity bias (Durden andSilberman 1976 andGrenzke 1989), this has made it hard to establish whether contributions do not have a substantial influence on political decision-making because politicians act according to their ideology (Chappell 1982) or whether contributions are used to forge "cozy" alliances between politicians and specific (groups of) contributors (Stratmann 1995 andKroszner andStratmann 1998). The literature has used the event study methodology to try to overcome these problems, but found mixed results (Roberts 1990, Jayachandran 2004, Ansolabehere et al 2004.…”

Section: Related Literature and The Context Of The 1998 Elections mentioning

confidence: 99%

Political connections and preferential access to finance: The role of campaign contributions

Claessens

Feijen

Laeven

2008

Journal of Financial Economics

1,386

763

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Abstract:We provide empirical evidence that campaign contributions are strongly associated with market expectations of future firm-specific political favors, including preferential access to external finance. Using a novel dataset, we find that Brazilian firms providing more contributions in the 1998 campaign to (elected) federal deputies experienced higher stock returns following the election, even after controlling for industry-specific effects and firm-specific characteristics. This suggests that federal deputies were expected to shape policy and actions to benefit particular firms. Consistent with such political favors, we find that these firms substantially increased their financial leverage relative to a control group in the four years following election, especially from banks, suggesting that contributions gained firms preferential access to finance. JEL Classifications: D7, G1, G2, G3, and P48.

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Section: Related Literature and The Context Of The 1998 Elections mentioning

confidence: 99%

Political connections and preferential access to finance: The role of campaign contributions

Claessens

Feijen

Laeven

2008

Journal of Financial Economics

1,386

763

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“…This is particularly helpful, as prices in efficient markets incorporate all available information and should react only to unexpected news (Fama, 1970). Roberts (1990) pushed the returns into negative territory. The author also found evidence suggestive of influencemotivated giving and huge ex post return on political investment for firms supporting Bush.…”

Section: The Value Of Political Connectednessmentioning

confidence: 99%

Is There a Link between Politics and Stock Returns? A Literature Survey

Wisniewski

2015

SSRN Journal

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This survey starts by reviewing the literature investigating whether political connectedness of companies creates wealth for their shareholders. It then moves on to examine whether there is an association between the orientation of the political executive or the phase of the electoral cycle with movements of the stock market index. The price impact of politically-relevant events, such as wars, terrorist attacks, revolutions, coups or issuance of communications by those in positions of power is also discussed. The review closes with an examination of the impact of political uncertainty on stock markets and with a reflection on the direction of causality.JEL codes: G12; G14; G18; F50

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“…There is, however, strong evidence across many countries that firms' political connections are associated with improved operational (e.g., returns on equity and investment) and stock market performance (for overviews, see Faccio 2006Faccio , 2010Goldman et al 2009a;Niessen and Ruenzi 2010 One interesting approach to establish such effects was pioneered by Roberts (1990). He exploited the unexpected death of US Senator Henry Jackson as the basis of an event study evaluating how it affected stock prices of his 'constituent interests'.…”

Section: Public Versus Private Interests: Empirical Evidencementioning

confidence: 99%

Moonlighting Politicians: A Survey and Research Agenda

Geys

Mäuse²

2013

The Journal of Legislative Studies

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Elected representatives in many countries are legally allowed to carry out (un)paid jobs in addition to their political mandate, often referred to as 'moonlighting'. Despite the important selection and incentive effects such outside positions might engender, academic studies evaluating the prevalence, desirability and/or consequences of politicians' moonlighting have remained relatively scarce; often due to severe data restrictions. In recent years, however, more stringent disclosure rules have increased data availability, and large-sample analyses are becoming increasingly feasible. Besides surveying recent empirical contributions to this developing research field, this paper also outlines unresolved issues and thereby develops an agenda for future enquiry.

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A Dead Senator Tells No Lies: Seniority and the Distribution of Federal Benefits

Cited by 407 publications

References 50 publications

Political connections and preferential access to finance: The role of campaign contributions

Political connections and preferential access to finance: The role of campaign contributions

Is There a Link between Politics and Stock Returns? A Literature Survey

Moonlighting Politicians: A Survey and Research Agenda

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