Political Geography And Corporate Political Strategy

881 WordsDec 23, 20164 Pages
Political geography and corporate political strategy of Murad Antia, Incheol Kim and Christos Pantzalis discusses the implication of corporate lobbying. This article studies the purpose of corporate lobbying, who uses corporate lobbying and the implication of corporate lobbying based on the constant changes in the political map (mid-term and presidential elections). Political geography and corporate political strategy also examines “the relationship between political geography and corporate political strategy as measured by lobbying expenditures”. M. Antia, I. Kim and C. Pantzalis found that firms tend to increase lobbying expenditures when a shift in the political map puts them further away from the president, in other terms, companies tend to increase lobbying intensity when they lose access to political power. They also found that the primary goal of lobbying is to build political capital to take advantage of short-term opportunities. And finally, they identified that when their ties to the center of political power diminish, increasing lobbying intensity can increase valuation. This article discusses why firms engaged in corporate lobbying and how firms engaged in corporate lobbying tend to out-perform non-lobbying firms. Previous articles from (Ansolabehere et al., 2003; Durden et al., 1991; Kroszner and Stratmann, 1998; Langbein and Lotwis, 1990; Stratmann, 1991, 1995, 1998) concentrate on the influence that non-politician participants might have on the political
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