Corporate lobbying, political connections, and the bailout of banks

Benjamin M. Blau, Tyler J. Brough, Diana W. Thomas

Research output: Contribution to journalArticle

53 Citations (Scopus)

Abstract

Political involvement has long been shown to be a profitable investment for firms that seek favorable regulatory conditions or support in times of economic distress. But how important are different types of political involvement for the timing and magnitude of political support? To answer this question, we take a comprehensive look at the lobbying expenditures and political connections of banks that were recipients of government support under the 2008 Troubled Asset Relief Program (TARP). We find that politically-engaged firms were not only more likely to receive TARP funds, but they also received a greater amount of TARP support and received the support earlier than firms that were not politically involved.

Original languageEnglish
Pages (from-to)3007-3017
Number of pages11
JournalJournal of Banking and Finance
Volume37
Issue number8
DOIs
StatePublished - Aug 2013
Externally publishedYes

Fingerprint

Assets
Political connections
Lobbying
Bailout
Distress
Expenditure
Government support
Political support
Economics

All Science Journal Classification (ASJC) codes

  • Economics and Econometrics
  • Finance

Cite this

Corporate lobbying, political connections, and the bailout of banks. / Blau, Benjamin M.; Brough, Tyler J.; Thomas, Diana W.

In: Journal of Banking and Finance, Vol. 37, No. 8, 08.2013, p. 3007-3017.

Research output: Contribution to journalArticle

Blau, Benjamin M. ; Brough, Tyler J. ; Thomas, Diana W. / Corporate lobbying, political connections, and the bailout of banks. In: Journal of Banking and Finance. 2013 ; Vol. 37, No. 8. pp. 3007-3017.
@article{8bf23753b6ef48f4899ddef25951a99a,
title = "Corporate lobbying, political connections, and the bailout of banks",
abstract = "Political involvement has long been shown to be a profitable investment for firms that seek favorable regulatory conditions or support in times of economic distress. But how important are different types of political involvement for the timing and magnitude of political support? To answer this question, we take a comprehensive look at the lobbying expenditures and political connections of banks that were recipients of government support under the 2008 Troubled Asset Relief Program (TARP). We find that politically-engaged firms were not only more likely to receive TARP funds, but they also received a greater amount of TARP support and received the support earlier than firms that were not politically involved.",
author = "Blau, {Benjamin M.} and Brough, {Tyler J.} and Thomas, {Diana W.}",
year = "2013",
month = "8",
doi = "10.1016/j.jbankfin.2013.04.005",
language = "English",
volume = "37",
pages = "3007--3017",
journal = "Journal of Banking and Finance",
issn = "0378-4266",
publisher = "Elsevier",
number = "8",

}

TY - JOUR

T1 - Corporate lobbying, political connections, and the bailout of banks

AU - Blau, Benjamin M.

AU - Brough, Tyler J.

AU - Thomas, Diana W.

PY - 2013/8

Y1 - 2013/8

N2 - Political involvement has long been shown to be a profitable investment for firms that seek favorable regulatory conditions or support in times of economic distress. But how important are different types of political involvement for the timing and magnitude of political support? To answer this question, we take a comprehensive look at the lobbying expenditures and political connections of banks that were recipients of government support under the 2008 Troubled Asset Relief Program (TARP). We find that politically-engaged firms were not only more likely to receive TARP funds, but they also received a greater amount of TARP support and received the support earlier than firms that were not politically involved.

AB - Political involvement has long been shown to be a profitable investment for firms that seek favorable regulatory conditions or support in times of economic distress. But how important are different types of political involvement for the timing and magnitude of political support? To answer this question, we take a comprehensive look at the lobbying expenditures and political connections of banks that were recipients of government support under the 2008 Troubled Asset Relief Program (TARP). We find that politically-engaged firms were not only more likely to receive TARP funds, but they also received a greater amount of TARP support and received the support earlier than firms that were not politically involved.

UR - http://www.scopus.com/inward/record.url?scp=84878649935&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=84878649935&partnerID=8YFLogxK

U2 - 10.1016/j.jbankfin.2013.04.005

DO - 10.1016/j.jbankfin.2013.04.005

M3 - Article

VL - 37

SP - 3007

EP - 3017

JO - Journal of Banking and Finance

JF - Journal of Banking and Finance

SN - 0378-4266

IS - 8

ER -