IDEAS home Printed from https://ideas.repec.org/a/oup/rfinst/v29y2016i4p1039-1071..html
   My bibliography  Save this article

The Corporate Value of (Corrupt) Lobbying

Author

Listed:
  • Alexander Borisov
  • Eitan Goldman
  • Nandini Gupta

Abstract

We examine whether the stock market considers corporate lobbying to be value enhancing, using an event that potentially limited the ability of firms to lobby but was exogenous to their characteristics and prior lobbying decisions. The results show that this exogenous shock negatively affects the value of firms that lobby. In particular, we estimate that a firm that spends $100,000 more on lobbying in the 3 years before the shock (where sample average lobbying expenses are about $4 million), experiences a loss of about $1.2 million in shareholder value on average. We also examine the channels through which lobbying may create value for firms. Received September 27, 2012; accepted June 23, 2015 by Editor Laura Starks.

Suggested Citation

  • Alexander Borisov & Eitan Goldman & Nandini Gupta, 2016. "The Corporate Value of (Corrupt) Lobbying," The Review of Financial Studies, Society for Financial Studies, vol. 29(4), pages 1039-1071.
    • Handle: RePEc:oup:rfinst:v:29:y:2016:i:4:p:1039-1071.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/rfs/hhv048
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:rfinst:v:29:y:2016:i:4:p:1039-1071.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/sfsssea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.