Capitol Punishment: Effects of Congressional Seniority Ranks on Corporate Outcomes in the U.S.

58 Pages Posted: 18 Feb 2016 Last revised: 13 Dec 2021

See all articles by Mehmet Canayaz

Mehmet Canayaz

Pennsylvania State University - Smeal College of Business

Multiple version iconThere are 2 versions of this paper

Date Written: December 10, 2021

Abstract

I study the effects of congressional seniority ranks on corporate outcomes in the U.S. I show that firms located in districts of lower-ranked legislators exhibit weaker sales to government, corporate downsizing, and lower valuations. These firms are also more exposed to civil disorder, including attacks that specifically target government offices, infrastructure, and employees. Seniority lotteries in House committees suggest that the links between congressional seniority ranks and corporate outcomes are causal.

Keywords: Political ranks, corporate behavior, civil disorder, right-to-carry gun laws

JEL Classification: G31, G32, G38, F52, D74, K42, H56, H57

Suggested Citation

Canayaz, Mehmet, Capitol Punishment: Effects of Congressional Seniority Ranks on Corporate Outcomes in the U.S. (December 10, 2021). Available at SSRN: https://ssrn.com/abstract=2733304 or http://dx.doi.org/10.2139/ssrn.2733304

Mehmet Canayaz (Contact Author)

Pennsylvania State University - Smeal College of Business ( email )

University Park, PA 16802
United States

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