Shedding Light on the Dark Side of Firm Lobbying: A Customer Perspective

Firms spend a substantial amount on lobbying—devoting financial resources on teams of lobbyists to further their interests among regulatory stakeholders. Previous research acknowledges that lobbying positively influences firm value, but no studies have examined the parallel effects for customers. Building on the attention-based view (ABV) of the firm, the authors examine these customer effects. Findings reveal that lobbying negatively affects...