RT Article
T1 Do criminal politicians affect firm investment and value?: evidence from a regression discontinuity approach
JF Journal of business ethics
VO 198
IS 3
SP 579
OP 614
A1 Nanda, Vikram
A2 Pareek, Ankur
LA English
YR 2024
UL https://ixtheo.de/Record/1925245942
AB We provide evidence on the effects of criminal/corrupt politicians on firm performance and investments in their constituencies. Using a regression discontinuity approach, we focus on close parliamentary elections in India to establish a causal link between election of criminal-politicians and firms' stock-market performance and investment decisions. Election of criminal-politicians leads to lower election-period and project-announcement stock-market returns for private-sector firms with economic ties to the district. There is a significant decline in total investment and employment by private-sector firms in criminal-politician districts. Interestingly, decline in private-sector investment is largely offset by a roughly equivalent increase in investment by state-owned firms.
K1 Corporate investments
K1 Corruption
K1 Criminal politicians
K1 D70
K1 D72
K1 D73
K1 Elections
K1 G30
K1 G38
K1 Indian political economy
K1 Political corruption
K1 Rent-seeking
K1 Aufsatz in Zeitschrift
DO 10.1007/s10551-024-05738-4