{"title":"Buffing firm innovation by lobbying","authors":"Anqi Jiao , Juntai Lu","doi":"10.1016/j.jcorpfin.2024.102557","DOIUrl":null,"url":null,"abstract":"<div><p>Corporate lobbying positively influences firm innovation outcomes. Firms that engage more in lobbying have more patents, more patent citations, and greater patent value. We establish this causality using instrumental variables estimation. Corporate lobbying plays a role of persuasion and fosters firm innovation by transmitting valuable information to politicians, which enhances firms' external political environment. The impact of lobbying on innovation is more pronounced for firms with comparative advantages in the product market, financial health, ESG performance, and institutional support. These results contribute to a deeper understanding of the role of firms' information value in the political process and provide new insights into how lobbying buffs firm development.</p></div>","PeriodicalId":15525,"journal":{"name":"Journal of Corporate Finance","volume":null,"pages":null},"PeriodicalIF":7.2000,"publicationDate":"2024-02-14","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Journal of Corporate Finance","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0929119924000191","RegionNum":1,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"BUSINESS, FINANCE","Score":null,"Total":0}
引用次数: 0
Abstract
Corporate lobbying positively influences firm innovation outcomes. Firms that engage more in lobbying have more patents, more patent citations, and greater patent value. We establish this causality using instrumental variables estimation. Corporate lobbying plays a role of persuasion and fosters firm innovation by transmitting valuable information to politicians, which enhances firms' external political environment. The impact of lobbying on innovation is more pronounced for firms with comparative advantages in the product market, financial health, ESG performance, and institutional support. These results contribute to a deeper understanding of the role of firms' information value in the political process and provide new insights into how lobbying buffs firm development.
期刊介绍：
The Journal of Corporate Finance aims to publish high quality, original manuscripts that analyze issues related to corporate finance. Contributions can be of a theoretical, empirical, or clinical nature. Topical areas of interest include, but are not limited to: financial structure, payout policies, corporate restructuring, financial contracts, corporate governance arrangements, the economics of organizations, the influence of legal structures, and international financial management. Papers that apply asset pricing and microstructure analysis to corporate finance issues are also welcome.
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