Papers & Opinions

Corporate finance | Empirics | Political institutions

Going Extreme: The Impact of Political Polarization on Corporate Investment

Paper

Posted on 11 May 2023

By Tiecheng Leng

Using data on roll-call voting patterns of U.S. state legislators from 1993 to 2016, we find a negative relationship between firm investment and state legislative polarization, measured as the ideological...
READ MORE

Corporate finance | Empirics

Polarized Corporate Boards

Paper

Posted on 16 July 2021

By Phong Ngo

We show that political polarization between directors and the CEO negatively impacts the effectiveness of corporate boards. At the director level, polarization increases directors’ incentive to monitor the CEO but...
READ MORE

Corporate finance | Empirics | Political institutions

Finance and Ideology: The Firm-Level Channels

Paper

Posted on 22 June 2021

By Haikun Zhu

We investigate how politicians’ ideologies affect economic outcomes and financial development through firm-level channels. We explore a unique setting of ideological change in China from Mao’s ideology to Deng’s around...
READ MORE