 Campaign Contributions and Firm Performance: The “Latvian Way”Vyacheslav Dombrovsky ()
No 2, SSE Riga/BICEPS Research Papers from Baltic International Centre for Economic Policy Studies (BICEPS), Stockholm School of Economics in Riga (SSE Riga) Abstract: This paper examines the effect of campaign contributions on firm performance in Latvia, using a quasi-experiment provided by the 2002 elections. An unanticipated result of the election was that the ‘Latvian Way’, one of the most influential parties, failed to be reelected and was replaced by the ‘First Party’. It constructs a unique dataset of firm-level campaign contributions by identifying all firms that donated directly or through its board member or shareholder. This paper finds that firms that provided contributions to the ‘Latvian Way’ experienced substantial decrease in sales in the after-election year, compared to firms that did not contribute. In contrast, firms that contributed to the ‘First Party’ experienced significant increase in sales. These findings suggest campaign contributions help firms benefit from firm-specific political favors. Pages: 34 pages Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:bic:rpaper:2 Access Statistics for this paper More papers in SSE Riga/BICEPS Research Papers from Baltic International Centre for Economic Policy Studies (BICEPS), Stockholm School of Economics in Riga (SSE Riga) Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.