by Jim Spencer, Star Tribune
The fight over corporate political donations is evolving from whether such gifts are in the public’s interest to whether they’re even in the interest of the companies themselves.
A pair of University of Minnesota finance professors who looked at the question found that on average, for every $10,000 a company donates to politics, its stock market value declines by $1.33 million in the next year.
The conclusion, from Rajesh Aggarwal and Tracy Wang of the U’s Carlson School of Management, along with Felix Meschke of the University of Kansas School of Business, adds to a growing body of research that suggests that businesses’ contributions generally hurt their shareholders rather than help them. [MORE]
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