Corporate Lobbying and firm performance variability
(2023) Finance Research Letters — Vol. 58, n° 58, p. 104524 (2023)
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- Abstract
- This paper is the first to provide empirical evidence that higher lobbying expenditures are associated with higher operational performance variability. Using data from S&P1500 firms over the 2000–2020 period, our estimates indicate a positive relationship between lobbying expenditures and the variability of return on asset and return on equity. Addressing the endogeneity concerns by applying a control function approach, we find results consistent with the view that the management of lobbying firms takes riskier investment decisions.
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Citations
Girard, A., Gnabo, J.-Y., LONDONO VAN RUTTEN, R., & et al. (2023). Corporate Lobbying and firm performance variability. Finance Research Letters, 58(58), 104524. https://doi.org/10.1016/j.frl.2023.104524 (Original work published 2023)