Journal Article

Court-Ordered Campaign Finance Deregulation and Stock Value of Contributors

Haishan Yuan

in American Law and Economics Review

Volume 17, issue 1, pages 1-42
Published in print March 2015 | ISSN: 1465-7252
Published online February 2015 | e-ISSN: 1465-7260 | DOI: https://dx.doi.org/10.1093/aler/ahv001
Court-Ordered Campaign Finance Deregulation and Stock Value of Contributors

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  • Analysis of Collective Decision-making
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The Bipartisan Campaign Reform Act of 2002 addressed two issues, soft money and independent expenditures on issue ads for electoral advocacy. The Supreme Court initially upheld most provisions in 2003 but subsequently weakened and struck down provisions on independent expenditures. I examine the stock value of firms with a long history of campaign contributions around the key developments of three Supreme Court cases. Stock prices of contributing firms react positively to Court events associated with campaign finance deregulation. It implies that the average rates of return to these rights of political spending are between 1 and 2% of stock values.

Keywords: D72; P48; K23

Journal Article.  13880 words.  Illustrated.

Subjects: Analysis of Collective Decision-making ; Other Economic Systems ; Law and Economics

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