Do Stock Returns Vary with Campaign Contributions? Bush vs. Gore: The Florida Recount

25 Pages Posted: 4 Oct 2010

Abstract

I examine the relation between campaign contributions and stock returns during the Florida recount period of the 2000 presidential elections. Using the full population of publicly traded firms, I find an economically significant positive (negative) relation between pre-election campaign contributions to Bush (Gore) and stock returns during the 37-day election recount period. This relation exists for both the level and partisanship of contributions, and exists incrementally at both the firm and industry levels. These relations are robust to several different specifications, including alternative event windows that exclude the potentially confounding House/Senate races. The firm-level analysis is consistent with contributions being influence-motivated.

Suggested Citation

Shon, John, Do Stock Returns Vary with Campaign Contributions? Bush vs. Gore: The Florida Recount. Economics & Politics, Vol. 22, Issue 3, pp. 257-281, November 2010. Available at SSRN: https://ssrn.com/abstract=1684879 or http://dx.doi.org/10.1111/j.1468-0343.2009.00359.x

John Shon (Contact Author)

Fordham University ( email )

113 West 60th Street
New York, NY 10019
United States

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