This file is part of IDEAS , which uses RePEc data
[ Papers |
Articles |
Software |
Books |
Chapters |
Authors |
Institutions |
JEL Classification |
NEP reports |
Search |
New papers by email |
Author registration |
Rankings |
Volunteers |
FAQ |
Blog |
Help! ]
The Jeffords Effect Author info | Abstract | Publisher info | Download info | Related research | Statistics Jayachandran, Seema
Additional information is available for the following
registered author(s):
In May 2001, Senator James Jeffords left the Republican Party and tipped control of the U.S. Senate to the Democrats. This paper uses the surprise event to demonstrate what I term the "Jeffords effect": changes in the political landscape have large effects on the market value of firms. I use a firm's soft-money donations to the national parties as the measure of how the firm aligns itself politically. In this event study, a firm lost .8 percent of market capitalization the week of Jeffords's switch for every $250,000 it gave to the Republicans in the previous election cycle. On the basis of the point estimates, the stock price gain associated with Democratic donations is smaller than the loss associated with Republican donations, but the estimates are consistent with the effects being equal and opposite. The results withstand several robustness checks, and the effects appear to persist over time.
To our knowledge, this item is not available for
download . To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Article provided by University of Chicago Press in its journal Journal of Law and Economics .
Volume (Year): 49 (2006)
Issue (Month): 2 (October)
Pages: 397-425
Download reference. The following formats are available: HTML
(with abstract ),
plain text
(with abstract ),
BibTeX ,
RIS (EndNote, RefMan, ProCite),
ReDIF
Handle: RePEc:ucp:jlawec:y:2006:v:49:i:2:p:397-425Contact details of provider: Postal: The University of Chicago Press, Journals Division, P.O. Box 37005 Chicago, IL 60637 Fax: (773) 753-0811 Email: Web page: http://www.journals.uchicago.edu/JLE/
Order Information: Web: http://www.journals.uchicago.edu/JLE/order1.html
For technical questions regarding this item, or to correct its listing, contact: (Christopher F. Baum).
Keywords: Other versions of this item:
References listed on IDEAS Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.: Stratmann, Thomas, 1998.
"The Market for Congressional Votes: Is Timing of Contributions Everything? ,"
Journal of Law & Economics ,
University of Chicago Press, vol. 41(1), pages 85-113, April.
Stephen Ansolabehere & John M. de Figueiredo & James M. Snyder Jr., 2003.
"Why Is There so Little Money in U.S. Politics? ,"
Journal of Economic Perspectives ,
American Economic Association, vol. 17(1), pages 105-130, Winter.
[Downloadable!] (restricted)
Stephen Ansolobehere & John M. de Figueiredo & James M. Snyder, 2003.
"Why Is There So Little Money in Politics? ,"
NBER Working Papers
9409, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Kroszner, Randall S & Stratmann, Thomas, 1998.
"Interest-Group Competition and the Organization of Congress: Theory and Evidence from Financial Services' Political Action Committees ,"
American Economic Review ,
American Economic Association, vol. 88(5), pages 1163-87, December.
[Downloadable!] (restricted)
Other versions:
Randall S. Kroszner & Thomas Stratmann, 1998.
"Interest Group Competition and the Organization of Congress: Theory and Evidence from Financial Services' Political Action Committees ,"
CRSP working papers
349, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
Randall S. Kroszner & Thomas Stratmann, 1996.
"Interest Group Competition and the Organization of Congress:Theory And Evidence from Financial Services Political Action Committees ,"
University of Chicago - George G. Stigler Center for Study of Economy and State
126, Chicago - Center for Study of Economy and State.
[Downloadable!] Randall S. Kroszner & Thomas Stratmann, .
"Interest Group Competition and the Organization of Congress: Theory and Evidence from Financial Services', Political Action Committees ,"
CRSP working papers
465, Center for Research in Security Prices, Graduate School of Business, University of Chicago.
Baron, David P, 1989.
"Service-Induced Campaign Contributions and the Electoral Equilibrium ,"
The Quarterly Journal of Economics ,
MIT Press, vol. 104(1), pages 45-72, February.
[Downloadable!] (restricted)
Bronars, Stephen G & Lott, John R, Jr, 1997.
"Do Campaign Donations Alter How a Politician Votes? Or, Do Donors Support Candidates Who Value the Same Things That They Do? ,"
Journal of Law & Economics ,
University of Chicago Press, vol. 40(2), pages 317-50, October.
Raymond Fisman, 2001.
"Estimating the Value of Political Connections ,"
American Economic Review ,
American Economic Association, vol. 91(4), pages 1095-1102, September.
[Downloadable!] (restricted)
Stratmann, Thomas, 2002.
"Can Special Interests Buy Congressional Votes? Evidence from Financial Services Legislation ,"
Journal of Law & Economics ,
University of Chicago Press, vol. 45(2), pages 345-73, October.
Full
references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Federico Cingano & Paolo Pinotti, 2009.
"Politicians at work. The private returns and social costs of political connections ,"
Temi di discussione (Economic working papers)
709, Bank of Italy, Economic Research Department.
[Downloadable!]
Jürgen Huber & Michael Kirchler, 2008.
"Corporate Campaign Contributions as a Predictor for Abnormal Stock Returns after Presidential Elections ,"
Working Papers
2008-18, Faculty of Economics and Statistics, University of Innsbruck.
[Downloadable!]
Pande, Rohini, 2007.
"Understanding Political Corruption in Low Income Countries ,"
CEPR Discussion Papers
6273, C.E.P.R. Discussion Papers.
[Downloadable!] (restricted)
Pande, Rohini, 2007.
"Understanding Political Corruption in Low Income Countries ,"
Working Paper Series
rwp07-020, Harvard University, John F. Kennedy School of Government.
[Downloadable!]
Nowook Park & Rohini Somanathan, 2004.
"Patronage in public administration: Presidential connections, position assignments and the performance of Korean public prosecutors, 1992-2000 ,"
Indian Statistical Institute, Planning Unit, New Delhi Discussion Papers
04-02, Indian Statistical Institute, New Delhi, India.
[Downloadable!]
Brian Knight, 2004.
"Are Policy Platforms Capitalized into Equity Prices? Evidence from the Bush/Gore 2000 Presidential Election ,"
NBER Working Papers
10333, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Other versions:
Knight*, Brian, 2007.
"Are policy platforms capitalized into equity prices? Evidence from the Bush/Gore 2000 Presidential Election ,"
Journal of Public Economics ,
Elsevier, vol. 91(1-2), pages 389-409, February.
[Downloadable!] (restricted) Knight, Brian, 2006.
"Are policy platforms capitalized into equity prices? Evidence from the Bush/Gore 2000 Presidential Election ,"
Journal of Public Economics ,
Elsevier, vol. 90(4-5), pages 751-773, May.
[Downloadable!] (restricted) Philip Hersch & Jeffry Netter & Christopher Pope, 2008.
"Do Campaign Contributions and Lobbying Expenditures by Firms Create “Political” Capital? ,"
Atlantic Economic Journal ,
International Atlantic Economic Society, vol. 36(4), pages 395-405, December.
[Downloadable!] (restricted)
Stijn Claessens & Erik Feijen & Luc Laeven, 2006.
"Does Campaign Finance imply Political Favors? ,"
Tinbergen Institute Discussion Papers
06-002/2, Tinbergen Institute.
[Downloadable!]
Erik Snowberg & Justin Wolfers & Eric Zitzewitz, 2006.
"Party Influence in Congress and the Economy ,"
NBER Working Papers
12751, National Bureau of Economic Research, Inc.
[Downloadable!] (restricted)
Cheung, Yan-Leung & Rau, P. Raghavendra & Aris, Stouraitis, 2008.
"The helping hand, the lazy hand, or the grabbing hand? Central vs. local government shareholders in publicly listed firms in China ,"
CEI Working Paper Series
2008-11, Center for Economic Institutions, Institute of Economic Research, Hitotsubashi University.
[Downloadable!]
Access and
download statistics Did you know? Authors can create their own profile with links to their works on the RePEc Author Service .
This page was last updated on 2009-10-19.
This information is provided to you by IDEAS at the Department of Economics , College of Liberal Arts and Sciences , University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics .