Do criminal politicians affect firm investment and value?: evidence from a regression discontinuity approach
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&...
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| 其他作者: | |
| 格式: | 电子 文件 |
| 语言: | English |
| Check availability: | HBZ Gateway |
| Journals Online & Print: | 载入...
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| Interlibrary Loan: | Interlibrary Loan for the Fachinformationsdienste (Specialized Information Services in Germany) |
| 出版: |
2024
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| In: |
Journal of business ethics
Year: 2025, 卷: 198, 发布: 3, Pages: 579-614 |
| Further subjects: | B
Indian political economy
B D73 B Corruption B G30 B Political corruption B G38 B Elections B Corporate investments B Aufsatz in Zeitschrift B Rent-seeking B Criminal politicians B D70 B D72 |
| 在线阅读: |
Volltext (lizenzpflichtig) Volltext (lizenzpflichtig) |
| 总结: | 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. |
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| ISSN: | 1573-0697 |
| Contains: | Enthalten in: Journal of business ethics
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| Persistent identifiers: | DOI: 10.1007/s10551-024-05738-4 |
