Abstract

http://ssrn.com/abstract=1984387
 


 



Campaign Contributions Over CEOs’ Careers


Brian Kelleher Richter


University of Texas at Austin - Red McCombs School of Business

Adam Fremeth


University of Western Ontario - Richard Ivey School of Business

Brandon Schaufele


University of Ottawa - Department of Economics

January 24, 2012


Abstract:     
Individuals dominate money in politics, accounting for over 90% of federal campaign contributions, yet studies of individuals’ giving patterns are scarce. We construct a new dataset to examine all of the contributions made between 1991 and 2008 by all 2,198 people who served as S&P 500 CEOs for any portion of that interval. We then exploit variation in these individuals’ leadership status over this span of their careers to identify that becoming an S&P 500 CEO causes a $4,000 jump per election-cycle in personal political giving relative to these individuals’ pre-CEO contribution levels. While some fraction of CEOs’ contributions can be attributed to their long-standing preferences and their ability to contribute, the striking change in behavior we identify upon individuals taking leadership roles cannot be explained by these factors alone. Despite causing individuals to give more money to more candidates, more political action committees (PACs), and more parties, serving as a CEO has little effect on partisan leanings. A battery of tests aimed at falsifying identification assumptions and exposing limits to our specifications’ robustness reinforce our findings — and demonstrate that, among other things, the patterns we identify hold whether individuals are promoted to CEO internally or are appointed externally.

Number of Pages in PDF File: 51

Keywords: Campaign Contributions, CEOs, Leaders, Personnel Economics, PACs

JEL Classification: D72, H89, K00, M59

working papers series


Download This Paper

Date posted: January 14, 2012 ; Last revised: May 15, 2012

Suggested Citation

Richter, Brian Kelleher and Fremeth, Adam and Schaufele, Brandon, Campaign Contributions Over CEOs’ Careers (January 24, 2012). Available at SSRN: http://ssrn.com/abstract=1984387 or http://dx.doi.org/10.2139/ssrn.1984387

Contact Information

Brian Kelleher Richter (Contact Author)
University of Texas at Austin - Red McCombs School of Business ( email )
2100 Speedway
B6500, CBA 5.250
Austin, TX 78712
United States
512-232-6751 (Phone)
HOME PAGE: http://briankrichter.com/
Adam Fremeth
University of Western Ontario - Richard Ivey School of Business ( email )
1151 Richmond Street North
London, Ontario N6A 3K7
Canada
Brandon Schaufele
University of Ottawa - Department of Economics ( email )
200 Wilbrod Street
Ottawa, Ontario K1N 6N5
Canada
Feedback to SSRN


Paper statistics
Abstract Views: 1,612
Downloads: 140
Download Rank: 116,963

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.625 seconds