Abstract
Analysis of a worldwide sample of sudden deaths of politicians reveals a market-adjusted 1.7% decline in the value of companies headquartered in the politician's hometown. The decline in value is followed by a drop in the rate of growth in sales and access to credit. Our results are particularly pronounced for family firms, firms with high growth prospects, firms in industries over which the politician has jurisdiction, and firms headquartered in highly corrupt countries.
Authors
Mara Faccio
Tom and Patty Hefner Chair in Finance & Professor of Management
Purdue University - Mitchell E. Daniels, Jr. School of Business
Research Member
David C. Parsley
David C. Parsley
Owen Graduate School of Management, Vanderbilt University, Nashville, Tennessee, USA.