Political Geography and Stock Returns: The Value and Risk Implications of Proximity to Political Power
Political Geography and Stock Returns: The Value and Risk Implications of Proximity to Political Power
复制标题
DOI：
10.1016/j.jfineco.2012.05.007
复制
发表时间：
2011-08
期刊：
影响因子：
--
通讯作者：
Chansog Kim;Christos Pantzalis;J. Park
中科院分区：
文献类型：
--
作者：
Chansog Kim;Christos Pantzalis;J. Park
我们发现，政治地理对股票收益的横截面有普遍的影响。我们收集了40年来的选举结果，并使用每个州的主要政治家与执政党（总统）的政治联盟指数（派）来代理当地公司接近政治权力。总部位于派高州的公司在原始回报和风险调整后的基础上都优于派低州的公司。总的来说，虽然我们不能排除间接的政治联系优势作为派效应的解释，我们的研究结果是一致的概念，接近政治权力的股票回报的影响，因为它反映了公司的政策风险。
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.