DOES POLITICAL SPENDING BOOST ROE?

CFO.COM
Apr 15, 2008

In the past 25 years, companies that contributed to a large number of political candidates saw a much higher annual return on equity than companies that didn't contribute, an academic study finds. While political scientists have often looked at the relationship between corporate political contributions and favorable voting, the professors sought to quantify whether firms themselves benefit financially from political contributions, ALEXEI OVTCHINNIKOV, an assistant professor of management and finance at Vanderbilt University told CFO.com.