Full metadata
Title
Firm Misconduct and the Structure of Political Spending
Description
In this study, I predict that involvement in a fraud-related securities class action lawsuit is associated with a change in political activity patterns toward less transparent channels and a reduction in the quality of public political disclosures. Allegations of fraud may impair a firm’s reputation and cause the firm to reevaluate the effectiveness of its political strategies. I find evidence that firms involved in a fraud-related securities class action lawsuit are associated with less political action committee (PAC) contributions and more lobbying after the accusation. I find a similar pattern for additional measures of transparency: firms shift from in-house lobbying to contract lobbying, are more likely to spend through their subsidiaries, and increase activity through their subsidiaries in the period after the fraud-related securities class action lawsuit. I also find that firms significantly reduce the level of their voluntary political spending disclosures. Overall, my results provide evidence of a change in real activities and disclosures after an accusation of fraud. While prior research documents that firms generally work to improve their reputations following a fraud, I find evidence that firms reduce the transparency of their corporate political spending and related disclosures.
Date Created
2021
Contributors
- Paparcuri, Christina Marie (Author)
- Brown, Jennifer L (Thesis advisor)
- Huston, George R (Committee member)
- Kenchington, David G (Committee member)
- Arizona State University (Publisher)
Topical Subject
Resource Type
Extent
52 pages
Language
Copyright Statement
In Copyright
Primary Member of
Peer-reviewed
No
Open Access
No
Handle
https://hdl.handle.net/2286/R.2.N.168401
Level of coding
minimal
Cataloging Standards
Note
Partial requirement for: Ph.D., Arizona State University, 2021
Field of study: Accountancy
System Created
- 2022-08-22 03:02:49
System Modified
- 2022-08-22 03:03:12
- 1 year 8 months ago
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