Companies across major sectors of the market are reassessing political donations in response to the January 6th storming of the U.S. Capitol, but it is too soon to know whether it leads to fundamental changes in the way money flows between politics and business. In this video we discuss whether companies should make political donations?
In april i made a bit of a slip by controversially at the time i was pretty sure that binface that if i could be seen to endorse him that it was quite a surprise to me when some other yesterday, you might have seen in the news to certain republicans who voted against the members of congress who voted to throw out that averages to just under $1500 per congressperson.
Adding that the majority of their contributions corporate political donations are a fascinating subject. to political figures, and possibly requesting the whole question of companies or wealthy there is an assumption that some sort of ‘quid lies at the heart of most political finance legislation. to political campaigns and so as a work around, create pacs (or political
Action committees), data on donations from corporate pacs is freely companies don’t just give money to political organizations; they also frequently make charitable this can be controversial with shareholders with maximizing shareholder wealth, because many argue that if corporate management want their own money – corporate funds belong to shareholders. is going to agree
With the choices made by company management. fortunately, a lot of research exists on topics like this. is expected to act in another parties’ best interests. and make decisions that maximize shareholder desire to maximize their own wealth, or their influence in the world. they analyzed corporate political donations positive effect on share price in companies
That made political donations. benefit for the owners of the companies in question. donations were actually associated with higher shareholder returns. marketing tool for the companies in question in addition, the donations might make employees the study points out that there are also donations, and when all of these effects are corporate financial performance, or
At least not harm it. of good corporate governance, the researchers political donations and indicators of poor corporate governance. firms with strong anti-takeover devices were these corporate structures are all things in the paper they show that firms with a poison so the takeaway is that in situations where political donations using company funds to influential people,
Doing this more for their the study didn’t find any relationship between companies with good and bad corporate governance another study that i found quite interesting the stock performance of american companies the idea was to see if the stocks of companies better, than those that gave money to election losers. in the days after an election should be a an election will
Affect a company’s future success. company had donated to, it might indicate better prospects because of the corporate donation. information, or see government policies put the team made a few surprising discoveries in their research. that ended up winning, while smaller, weaker the reason for this is not entirely clear—it are just better at predicting future events,
Are happy with the status quo and support companies are hoping for changes to occur whatever the reason, the companies that gave to election winners were likely to have higher-performing they argued that simply comparing the post-election versus losers could be meaningless, and just so, they moved on to analyze extremely close vote tallies were within five percent of being
A tie. they could then see if companies derive significant they found that in these situations, the companies their stock price increase by point zero five percent. in a final piece of research, the team looked analyzing the relationship between changes the stock performance of the companies that had donated to them. once again, they found no significant relationship.
Don’t seem to be reflected in stock price several large companies, including facebook, pull or review political donations after the events of january 6th. shareholder wealth, and they run the risk i get the feeling that both investors in – and be happier if the companies just got on with the values of management through spending some of this reminds me of a great
Piece do you follow the values of jesus or buddha or marx? i follow the values of the carphone warehouse… i have a longer video coming out next week, see you guys later, bye.
Transcribed from video
Should Companies Make Political Donations? By Patrick BoyleliveBroadcastDetails{isLiveNowfalsestartTimestamp2021-07-10T200010+0000endTimestamp2021-07-10T201340+0000}
