Corporate Political Power, Subsidies, and Legal Disciplining

• In Event: Corporate Politics in American Political Economy

Abstract

Political power is one of the most extensively discussed issues in political economy, although prior researchers provide few metrics for its estimation. This study introduces a new set of corporate political power measures using the political power of individual legislators and firms’ political contributions. Using these new measures, we examine if corporate political power explains a firm’s receipt of government subsidies or other financial incentives. This study also investigates whether politically connected firms are less scrutinized by regulatory agencies and receive reduced punishments when found guilty of policy or legal infractions.

Authors

• Reza Houston, Ball State University

• Stephen P. Ferris, Indiana University of Pennsylvania

• Blake Rayfield, Northern Arizona University