Big U.S. corporations that created political action committees and made other forays into politics bounced back with less bounce from the financial crisis, according to a study of S&P 500 firms by John C. Coates IV of Harvard Law School. The post-2008 increase in these companies' industry-relative shareholder value was 8% lower, on average, than increases registered by politically inactive firms. Political engagement may dilute a company's strategic focus and lead it to make wasteful investments, Coates says.
Read more at Wiley.
Read more at Wiley.
