The Role of Lobbying Intensity, PAC Formation and Political Connections on Financial Performance in the Oil and Gas Industry

In this paper, I test the relationship between corporate political activities (PACs, Lobbying and Connections) on subsequent financial performance of firms in the oil and gas industry from 1998 to 2008. I find that all three... [ view full abstract ]

In this paper, I test the relationship between corporate political activities (PACs, Lobbying and Connections) on subsequent financial performance of firms in the oil and gas industry from 1998 to 2008. I find that all three types of political activities are positively associated with subsequent firm-level performance, as measured by Earnings Before Interest and Taxes (EBIT). The findings add to the small, yet robust, argument of rent-seeking as a theoretical underpinning for corporate political activity.