Corporate Political Strategies and Return Predictability

Authors

Chansog Kim
Incheol Kim, The University of Texas Rio Grande ValleyFollow
Christos Pantzalis
Jung Chul Park

Document Type

Article

Publication Date

12-12-2018

Abstract

We assess whether observable corporate political strategies can serve as channels of value relevant political information flow into stock prices and form the basis for profitable return predictability strategies. We document that returns of politically connected firms’ stocks lead those of their non-connected peers, suggesting that information shocks associated with new policies and other political developments become evident first in the stock prices of firms that pursue political strategies and then, with delay, in those of similar non-connected firms.

Comments

Original published version available at https://doi.org/10.2469/faj.v74.n4.5

Recommended Citation

Kim, Chansog (Francis), Incheol Kim, Christos Pantzalis, and Jung Chul Park. “Corporate Political Strategies and Return Predictability.” Financial Analysts Journal 74, no. 4 (December 12, 2018): 87–101. https://doi.org/10.2469/faj.v74.n4.5

First Page

87

Last Page

101

Publication Title

Financial Analysts Journal

DOI

10.2469/faj.v74.n4.5