Political Spending and Shareholder Wealth: The Effect of the U.S. Supreme Court Ruling in Citizens United

In: American politics research, Band 42, Heft 4, S. 579-599

Abstract

We examine the impact of the Citizens United decision on firm value. While the value of U.S. firms do not respond significantly to the Citizens United decision on average, we find evidence that firms in industries subject to more extensive regulation react significantly and positively to the announcement. We also find evidence consistent with Justice John Paul Stevens' argument that the Court decision will affect state laws. Specifically, our results indicate that firms that are headquartered in states with more stringent limits on political spending by corporations respond positively to the announcement. [Reprinted by permission of Sage Publications Inc., copyright holder.]