Political polarization

    Papers & Opinions

    Empirics | Financial markets

    Does Partisanship Affect Mutual Fund Information Processing?

    Paper

    Posted on 6 January 2025

    By Wanyi Wang

    This paper studies how partisanship affects mutual fund information processing at the firm level. Using textual analysis of earnings call transcripts, I identify discussions on partisan-sensitive topics, such as climate...
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    Empirics | Financial markets | Political institutions

    Financial Market Exposure Increases Generalized Trust, Particularly Among the Politically Polarized

    Paper

    Posted on 19 April 2024

    By Saumitra Jha

    How can we build trust, especially in polarized societies? We propose that exposure to broad financial markets—where individuals place their assets in the hands of large groups of unfamiliar agents...
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    Empirics | Financial markets | Media

    Corporate Response to the Black Lives Matter Movement

    Paper

    Posted on 30 June 2022

    By AJ Chen

    We investigate determinants that encourage companies to speak out via twitter or their websites in support of Black Lives Matter (BLM) after the death of George Floyd on May 25,...
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    Banking | Electoral politics | Empirics | Political institutions

    The Costs of Political Misalignment: Forest Fires and Bank Loans in Turkey

    Opinion

    Posted on 16 September 2021

    By Orkun Saka

    Recent wildfires in Turkey have not only destroyed more than 95,000 hectares of its coastal forestland but also divided the country further into its political colors. This piece discusses the...
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    Empirics | Political institutions | Special interest politics

    Why We Don’t Write More Papers on Political Finance

    Opinion

    Posted on 17 August 2021

    By Orkun Saka

    Despite the commonly held views of economists on regulatory capture, our profession has been much more hesitant in recognising similar conflicts of interests that may exist in economics research. This...
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    Empirics | Financial markets

    Partisan Return Gap

    Paper

    Posted on 19 July 2021

    By Jinfei Sheng

    We document sharp differences in stock price responses to COVID-19-related news between public firms headquartered in blue counties (dominated by Democratic voters) and those in red counties (dominated by Republican...
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    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...
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    Corporate finance | Empirics

    The Political Polarization of U.S. Firms

    Paper

    Posted on 3 July 2021

    By Elisabeth Kempf

    Executive teams in U.S. firms are becoming increasingly politically polarized. We establish this new fact using political affiliations from voter registration records for top executives of S&P 1500 firms between...
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