A study by two College of Business Administration professors at the University of Tennessee, Knoxville, found that when firms engage in corporate political activities, such as lobbying and making campaign contributions, they enjoy about 20 percent higher performance.
The study, by Russell Crook and David Woehr, along with Sean Lux of the University of South Florida, entitled "Mixing Business with Politics: A Meta-Analytic Study of Corporate Political Activity," will be published in the January 2011 edition of the Journal of Management, and available online at http://jom.sagepub.com/.
The researchers looked at more than 7,000 firms over various time periods, analyzing what leads firms to engage in corporate political activity. They found that the larger the firm, the more likely it was to be politically active. Also, politicians with more policy-setting clout are more likely to be on the receiving end of corporate contributions. Incumbents are also more likely to receive corporate attention.
This research follows the January 2010 decision by the U.S. Supreme Court in Citizens United vs. Federal Election Commission, which overturned a long-standing ruling limiting business spending on political campaigns. According to the researchers, this arguably opens the door to even higher levels of corporate political activity. Indeed, despite the state of the U.S. economy, more money flowed to politicians during this past election cycle than ever before.
"There will be more corporate political activity because donations will be subject to less scrutiny and transparency; thus it will be more difficult to track down the source of corporate political activity," said Crook. "Given this, we think that the Supreme Court ruling means that corporations and politicians will develop closer relationships than ever before."
The authors do not speculate as to why corporate political activity leads to fatter profit margins but point to examples such as the Copyright Term Extension Act, dubbed the "Mickey Mouse Protection Act," in which Disney successfully lobbied to extend U.S. copyrights by 20 years.
While the authors say these dealings do not smack of corruption, they do say it is a cause for concern to policymakers, managers, journalists and citizens alike.
"We do not believe that this activity is illegal, but this activity constrains natural market forces and is thus undesirable. And with the new Supreme Court ruling, it is only going to get worse," said Crook.
Whitney Holmes | EurekAlert!
The Great Unknown: Risk-Taking Behavior in Adolescents
19.01.2017 | Max-Planck-Institut für Bildungsforschung
A sudden drop in outdoor temperature increases the risk of respiratory infections
11.01.2017 | University of Gothenburg
An important step towards a completely new experimental access to quantum physics has been made at University of Konstanz. The team of scientists headed by...
Yersiniae cause severe intestinal infections. Studies using Yersinia pseudotuberculosis as a model organism aim to elucidate the infection mechanisms of these...
Researchers from the University of Hamburg in Germany, in collaboration with colleagues from the University of Aarhus in Denmark, have synthesized a new superconducting material by growing a few layers of an antiferromagnetic transition-metal chalcogenide on a bismuth-based topological insulator, both being non-superconducting materials.
While superconductivity and magnetism are generally believed to be mutually exclusive, surprisingly, in this new material, superconducting correlations...
Laser-driving of semimetals allows creating novel quasiparticle states within condensed matter systems and switching between different states on ultrafast time scales
Studying properties of fundamental particles in condensed matter systems is a promising approach to quantum field theory. Quasiparticles offer the opportunity...
Among the general public, solar thermal energy is currently associated with dark blue, rectangular collectors on building roofs. Technologies are needed for aesthetically high quality architecture which offer the architect more room for manoeuvre when it comes to low- and plus-energy buildings. With the “ArKol” project, researchers at Fraunhofer ISE together with partners are currently developing two façade collectors for solar thermal energy generation, which permit a high degree of design flexibility: a strip collector for opaque façade sections and a solar thermal blind for transparent sections. The current state of the two developments will be presented at the BAU 2017 trade fair.
As part of the “ArKol – development of architecturally highly integrated façade collectors with heat pipes” project, Fraunhofer ISE together with its partners...
19.01.2017 | Event News
10.01.2017 | Event News
09.01.2017 | Event News
19.01.2017 | Earth Sciences
19.01.2017 | Life Sciences
19.01.2017 | Physics and Astronomy