Résumé
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.
| langue originale | Anglais |
|---|---|
| Numéro d'article | 104524 |
| journal | Finance Research Letters |
| Volume | 58 |
| Les DOIs | |
| Etat de la publication | Publié - déc. 2023 |
Financement
No funding was received for this work. We further confirm that any aspect of the work covered in this manuscript that has involved human patients has been conducted with the ethical approval of all relevant bodies and that such approvals are acknowledged within the manuscript. ☆ We want to thank Marc Deloof, Hans Degryse, Thomas Lambert and the participants of the Belgian Financial Research Forum 2023 and UCLouvain doctoral workshop.