 Changes in the electorate and firm values: Evidence from the introduction of female suffrage in SwitzerlandJörg R. Stahl Journal of Empirical Finance, 2023, vol. 70, issue C, 386-402 Abstract: This paper analyzes the effect of the composition of the electorate on corporate prospects. Electorates constantly change, and support-maximizing policymakers adjust their legislative behavior to accommodate shifts in voter preferences. If the policy adjustments affect individual firms or entire industries, anticipating the effects is crucial for corporate decision-makers. I analyze a large-scale shock to the composition of the electorate — the introduction of female suffrage in Switzerland in 1971. I compile a hand-collected dataset on Swiss security prices and firm level data. In a first step, I quantify investor responses in capital markets around the date of the referendum. I then apply a Difference-in-Differences approach and show that firm profitability is sensitive to expected changes in government policies that reflect female voters’ preferences. The results emphasize that considering the evolution of the electorate and its impact on policymaking should be an integral part of corporate strategies. Keywords: Composition of the electorate; Female suffrage; Legislative adjustments; Corporate prospects (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:70:y:2023:i:c:p:386-402 DOI: 10.1016/j.jempfin.2022.12.009 Access Statistics for this article Journal of Empirical Finance is currently edited by R. T. Baillie, F. C. Palm, Th. J. Vermaelen and C. C. P. Wolff More articles in Journal of Empirical Finance from Elsevier |
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