This is they type of research one would expect to be applied against Republicans. But not this time. The following is an abstract from All the President's Friends: Political Access and Firm Value:
Using novel data on White House visitors from 2009 through 2015, we find that corporate executives’ meetings with key policymakers are associated with positive abnormal stock returns. We also find evidence suggesting that following meetings with federal government officials, firms receive more government contracts and are more likely to receive regulatory relief (as measured by the tone of regulatory news). The investment of these firms also becomes less affected by political uncertainty after the meetings. Using the 2016 presidential election as a shock to political access, we find that firms with access to the Obama administration experience significantly lower stock returns following the release of the election result than otherwise similar firms. Overall, our results provide evidence suggesting that political access is of significant value to corporations.
That those firms experienced lower stock returns after Trump was elected is a refreshing comeuppance.
That came to us by way of Timothy P. Carney's Study documents how profitable access to Obama's White House was where he noted that the possible advantages included government contracts, regulatory relief, inside information, and regulations hindering competition.
It pays to have friends in high places. The mainstream media gave Obama a pass. But you can be sure that if the Trump administration does the same thing we can expect to see much, much bigger headlines about it.
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2:27 PM 6/5/2017
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