کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
959533 929311 2012 33 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
Political geography and stock returns: The value and risk implications of proximity to political power
موضوعات مرتبط
علوم انسانی و اجتماعی مدیریت، کسب و کار و حسابداری حسابداری
پیش نمایش صفحه اول مقاله
Political geography and stock returns: The value and risk implications of proximity to political power
چکیده انگلیسی

We show that political geography has a pervasive effect on the cross-section of stock returns. We collect election results over a 40-year period and use a political alignment index (PAI) of each state's leading politicians with the ruling (presidential) party to proxy for local firms’ proximity to political power. Firms whose headquarters are located in high PAI states outperform those located in low PAI states, both in terms of raw returns, and on a risk-adjusted basis. Overall, although we cannot rule out indirect political connectedness advantages as an explanation of the PAI effect, our results are consistent with the notion that proximity to political power has stock return implications because it reflects firms’ exposure to policy risk.

ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: Journal of Financial Economics - Volume 106, Issue 1, October 2012, Pages 196–228
نویسندگان
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