Firm-level political uncertainty, corporate lobbying and

Index

Abstract

This paper investigates the relationship between firm-specific political uncertainty and corporate risk-taking. Using a large sample of non-financial U.S. firms (2002-2021), the authors find a positive relationship between firm-level political uncertainty and risk-taking, particularly for larger firms. This effect is amplified for firms with higher lobbying spending. The findings are robust to alternative risk measures and endogeneity tests.

Publisher

Humanities and Social Sciences Communications

Published On

Mar 05, 2024

Authors

Lukas Timbate, Dongil Kim, Dereje Asrat, Hwang Sungjun

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