SSRN Home Search and Download Papers Browse Abstract and Paper Submission Subscribe to Networks View Briefcase Top Papers Top Authors Top Institutions

 

Abstract

 


 



Corporate Lobbying and Financial Performance

Hui Chen
University of Colorado at Boulder

David C. Parsley
Vanderbilt University - Owen Graduate School of Management

Ya-wen Yang
Wake Forest University


January 13, 2010


Abstract:     
Corporate lobbying activities are designed to influence legislators and thus to further company goals by encouraging favorable policies and/or outcomes. Using data made available by the Lobbying Disclosure Act of 1995, this study examines corporate lobbying activities from a financial perspective. We find that on average, lobbying is positively related to accounting and market measures of financial performance. These results are robust across a number of empirical specifications and continue to hold when we account for potential sample selection. We also report market performance evidence using a portfolio approach. We find that portfolios of firms with the highest lobbying intensities significantly outperform their benchmarks in the three years following portfolio formation.

Keywords: Corporate Lobbying, accounting performance, market returns, portfolio

JEL Classifications: G3, G14, G18

Working Paper Series

Date posted: September 13, 2007 ; Last revised: January 19, 2010

Suggested Citation

Chen, Hui, Parsley, David C. and Yang, Ya-wen, Corporate Lobbying and Financial Performance (January 13, 2010). Available at SSRN: http://ssrn.com/abstract=1014264


Export to: Export Citation What's this?

Contact Information

Hui Chen (Contact Author)
University of Colorado at Boulder ( email )
1070 Edinboro Drive
Boulder, CO 80309
United States
David C. Parsley
Vanderbilt University - Owen Graduate School of Management ( email )
401 21st Avenue South
Nashville, TN 37203
United States
615-322-0649 (Phone)
615-343-7177 (Fax)
Ya-wen Yang
Wake Forest University ( email )
P.O. Box 7659
Winston-Salem, NC 27109
United States
Feedback to SSRN (Beta)


Paper statistics
Abstract Views: 1,556
Downloads: 538
Download Rank: 13,620

© 2010 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright
This page was served by apollo1 in 0.172 seconds.