Stock market reactions to firm visits by presidents of the United States: George H. W. Bush through Donald J. Trump

Abstract

We examine stock market reactions to public company visits and the public comments made therein by five presidents (George H. W. Bush through Donald J. Trump) over three decades (from 1989 to 2019). We find striking evidence that investors value these visits during periods of unified government or when the president announces favorable policy. However, a president's praise during the visit and his popularity at the time of the visit do not appear to have an impact on investors’ reactions. Our findings suggest that investors value affiliation with the president only when they perceive opportunities to obtain substantive policy benefits.