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
There are 2 versions of this paper
Capitol Punishment: Effects of Congressional Seniority Ranks on Corporate Outcomes in the U.S.
Capitol Punishment: Effects of Congressional Seniority Ranks on Corporate Outcomes in the U.S
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: Suggested Citation