Join (topology)

Statistics

Economic system

Economics

Market economy

Business

Natural experiment

Mathematics

Politics

Political science

Political economy

Combinatorics

Political activism

Journal of Financial and Quantitative Analysis

We hypothesize that political activism is valuable because it helps reduce political uncertainty, which, in turn, fosters firm innovation. We find that firms that support more politicians, winning politicians, politicians on congressional committees with jurisdictional authority over the firms’ industries, and politicians who join those committees innovate more. We employ a natural experiment to show a causal effect of political activism on innovation. We also show evidence of intra-industry and geographical political activism spillovers.

Political Activism and Firm Innovation