Corporate political strategies and firm performance

Indications of firm-specific benefits from personal service in the U.S. government

Amy Hillman, Asghar Zardkoohi, Leonard Bierman

Research output: Contribution to journalArticle

293 Citations (Scopus)

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
StatePublished - Jan 1999
Externally publishedYes

Fingerprint

Costs
Firm performance
Political strategy
Corporate political strategy
Government
Uncertainty
Linkage
Event study methodology
Public policy
Transaction costs
Firm value
Lobbying
Policy process

Keywords

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

ASJC Scopus subject areas

  • Business and International Management
  • Management of Technology and Innovation
  • Strategy and Management

Cite this

Corporate political strategies and firm performance : Indications of firm-specific benefits from personal service in the U.S. government. / Hillman, Amy; Zardkoohi, Asghar; Bierman, Leonard.

In: Strategic Management Journal, Vol. 20, No. 1, 01.1999, p. 67-81.

Research output: Contribution to journalArticle

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