Market Valuation of Political Power―Evidence from Politically Connected Firms in Thailand―
研究了商业大亨成为国家领导人后，其旗下企业的市场价值变化，发现政治权力能提升关联企业价值，且股价在选举后持续上涨。
We analyze the outcomes when a handful of business tycoons became the country leaders as premier and cabinet members. The first nomination of the Thai Premier in 2001 allows us to identify such an event. The event study shows that immediately after the tycoons won the general election, the stock market recognized the value of the firms owned by tycoons-cum-leaders. Stock prices continued drifting upward in the following two years. Overall, the results indicate that political power is value enhancing to connected firms. Tycoons-cum-leaders have a political rent-seeking advantage to extend various economic favors to their firms.