publication . Article . Preprint . 2011

corporate campaign contributions and abnormal stock returns after presidential elections

Juergen Huber; Michael Kirchler;
Open Access
  • Published: 23 Nov 2011 Journal: Public Choice, volume 156, pages 285-307 (issn: 0048-5829, eissn: 1573-7101, Copyright policy)
  • Publisher: Springer Science and Business Media LLC
Abstract
Contributions by investor-owned companies play major roles in financing the campaigns of candidates for elective office in the United States. We look at the presidential level and analyze contributions by companies before an election and their stock market performance following US presidential elections from 1992 to 2004. We find that companies experienced abnormal positive post-election returns with (i) a higher percentage of contributions given to the eventual winner and (ii) with a higher total contribution given. Hypothetical portfolios of the 30 largest corporate contributors formed according to (i) the percentage of contributions given to the winner in a p...
Subjects
free text keywords: Presidential Election, Corporate Campaign Contributions, Abnormal Returns, Economics and Econometrics, Sociology and Political Science, Market capitalization, Stock market, Public finance, Microeconomics, Presidential system, Economics, Presidential election, jel:D72, jel:G10, jel:P16
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publication . Article . Preprint . 2011

corporate campaign contributions and abnormal stock returns after presidential elections

Juergen Huber; Michael Kirchler;