Papers & Opinions

Electoral politics | Empirics | Financial development | Financial markets | Political institutions | Special interest politics

Markets under Siege: How Political Beliefs Move Financial Markets

Paper

Posted on 12 October 2024

By Saumitra Jha

Can political beliefs, particularly about benefits of war versus peace, move thick financial markets? We document that following an unlikely victory by French citizen-soldiers during the German Siege of Paris...
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Empirics | Financial markets | Media

The Stock Market’s Response to the Political Affiliation of News Sources

Paper

Posted on 7 November 2022

By Alberto Manconi

We use the acquisition of Dow Jones & Co. by News Corporation in 2007 to study whether investors respond to a news source’s political affiliation. Following the acquisition, the price...
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Corporate finance | Empirics | Political institutions

Ruling with Ideology: Politicians’ Beliefs and Privatization

Paper

Posted on 3 October 2022

By Linxiang Ma

Ideology, the belief system about "how the society should be governed" that some group of people collectively sustains, is a critical factor that motivates economic decisions in democratic countries. However,...
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Corporate finance | Electoral politics | Empirics

Smokestacks and the Swamp

Paper

Posted on 25 August 2022

By Stefan Lewellen

We examine the causal effect of politicians' partisan ideologies on firms' industrial pollution decisions. Using a regression discontinuity design involving close U.S. congressional elections, we show that plants increase pollution...
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Central banking | Electoral politics | Political institutions

Ideology and Monetary Policy

Paper

Posted on 25 May 2022

By Nicolo Fraccaroli

We investigate the link between ideology and the sentiments of parliamentarians when they speak to the central bank they hold accountable. To this end, we collect textual data on the...
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Banking | Corporate finance | Electoral politics | Financial markets

Does Political Partisanship Cross Borders? Evidence from International Capital Flows

Paper

Posted on 4 October 2021

By Elisabeth Kempf

Does partisan perception shape the flow of international capital? We provide evidence from two settings, syndicated corporate loans and equity mutual funds, to show that ideological alignment with foreign governments...
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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...
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