Corporate political strategies and firm performance: indications of firm-specific benefits from personal service in the U.S. government
✍ Scribed by Amy J. Hillman; Asghar Zardkoohi; Leonard Bierman
- Publisher
- John Wiley and Sons
- Year
- 1999
- Tongue
- English
- Weight
- 93 KB
- Volume
- 20
- Category
- Article
- ISSN
- 0143-2095
No coin nor oath required. For personal study only.
✦ Synopsis
Firms employ a variety of political strategies (e.g., lobbying, contributions) in an attempt to gain influence or access to the public policy process. A variety of benefits may accrue to firms that are successful in creating a linkage with the government: information, access, influence, reduced uncertainty and transaction costs, etc. However, the direct benefits of such strategies are difficult to observe. One political strategy is studied here-personal service (having a firm representative serve in a political capacity). Event-study methodology results show that such linkages with the government positively affect firm value. These findings indicate that firmspecific benefits may result from political strategies.