Measuring political connections in Brazil

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Abstract/Contents

Abstract: This paper investigates the returns of contributions to electoral campaigns on the market value of firms. The hypothesis is that contributing to a federal representative or senator leads to higher stock returns for the firms that made these contributions. I implement an event study strategy using data from the Supreme Electoral Court on campaign contributions and from the São Paulo Stock Exchange on historical prices to test my hypothesis. I find some evidence that firms that contribute to campaign winners have returns higher than one would expect right after the election. The intensity of this impact seems to be influenced by how much a firm contributed to campaign winners and by how many campaign winners a firm contributed to.

Type of resource	text
Date created	June 5, 2019

Author	Crisóstomo Wainstock, Daniel
Degree granting institution	Stanford University, Department of Economics
Primary advisor	Dupas, Pascaline

Location	https://purl.stanford.edu/ww819vx0328

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License: This work is licensed under a Creative Commons Attribution Non Commercial 3.0 Unported license (CC BY-NC).

Preferred Citation: Crisóstomo Wainstock, Daniel. (2019). Measuring political connections in Brazil. Stanford Digital Repository. Available at: https://purl.stanford.edu/ww819vx0328

Stanford University, Department of Economics, Honors Theses

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