Corporate political strategies and firm performance: Indications of firm-specific benefits from personal service in the U.S. government

Amy J. Hillman, Asghar Zardkoohi, Leonard Bierman

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314 Scopus citations

Abstract

Firms employ a variety of political strategies (e.g., lobbying, contributions) in an attempt to gain influence or access to the public policy process. A variety of benefits may accrue to firms that are successful in creating a linkage with the government: information, access, influence, reduced uncertainty and transaction costs, etc. However, the direct benefits of such strategies are difficult to observe. One political strategy is studied here - personal service (having a firm representative serve in a political capacity). Event-study methodology results show that such linkages with the government positively affect firm value. These findings indicate that firm-specific benefits may result from political strategies.

Original languageEnglish (US)
Pages (from-to)67-81
Number of pages15
JournalStrategic Management Journal
Volume20
Issue number1
DOIs
StatePublished - Jan 1999
Externally publishedYes

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Keywords

  • Event studies
  • Financial performance
  • Government linkages
  • Political strategies

ASJC Scopus subject areas

  • Business and International Management
  • Strategy and Management

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