Papers & Opinions

Electoral politics | Empirics | Financial markets

Investor Rewards to Climate Responsibility: Stock-Price Responses to the Opposite Shocks of the 2016 and 2020 US Elections

Paper

Posted on 28 January 2022

By Stefano Ramelli

Donald Trump's 2016 election and his nomination of climate skeptic Scott Pruitt to head the Environmental Protection Agency drastically downshifted expectations about U.S. policy toward climate change. Joseph Biden's 2020...
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Banking | Empirics | Special interest politics

The Politics of the Paycheck Protection Program

Paper

Posted on 8 December 2021

By Thomas Lambert

This paper examines the incidence of special interests in the allocation of loans through the Paycheck Protection Program (PPP). We find that lobbying at the firm and industry levels helps...
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Empirics | Financial markets | Theory

Political Cycles and Stock Returns

Paper

Posted on 18 July 2021

By Lubos Pastor

We develop a model of political cycles driven by time-varying risk aversion. Agents choose to work in the public or private sector and to vote Democrat or Republican. In equilibrium,...
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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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