Thursday, December 27, 2012

Cronywatch: The correlation between campaign contributions and stockholder returns

A couple of Austrian finance professors find a correlation between campaign contributions and post-election stock market returns for American public companies.

When government at all levels accounts for almost 40% of GDP and endless regulation, it should not surprise us that businesses will turn to politics for both government buying and regulatory capture. And the problem will only get worse as governments get larger.

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