How CEO donations drive stock prices: Evidence from the Trump 2024 election

IF 7.4 2区经济学 Q1 BUSINESS, FINANCE

Finance Research Letters Pub Date : 2025-05-31 DOI:10.1016/j.frl.2025.107621

Dennis Koch , Dirk Schiereck

引用次数: 0

Abstract

This study examines the impact of CEO political support on the market valuation of Russell 3000 firms following the 2024 U.S. presidential election. Using event study methodology and federal donations data, we find that both the relative share and absolute amount of CEO donations to the Republican Party positively relate to abnormal stock returns post-election, while Democratic support results in significant penalties. Specifically, firms with Republican-leaning CEO experience 3.5 percentage points higher cumulative abnormal returns than firms with Democratic-leaning CEO five days after the election. Our findings suggest that investors anticipate economic benefits and risks for firms based on their CEOs’ political alignment with the Trump administration. By focusing on CEO donations and continuous measures of political support, this study provides novel insights into the financial implications of corporate political behavior, highlighting the importance of personal loyalty in a polarized environment.

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CEO捐款如何推动股价：来自特朗普2024年大选的证据

本研究考察了2024年美国总统大选后CEO政治支持对罗素3000指数公司市场估值的影响。利用事件研究方法和联邦捐款数据，我们发现CEO对共和党的捐款的相对份额和绝对金额与选举后的异常股票回报呈正相关，而对民主党的支持导致显著的惩罚。具体而言，在选举后五天，CEO倾向共和党的公司的累计异常回报率比CEO倾向民主党的公司高3.5个百分点。我们的研究结果表明，投资者根据ceo与特朗普政府的政治结盟来预测公司的经济利益和风险。通过关注CEO捐款和持续的政治支持措施，本研究为企业政治行为的财务影响提供了新颖的见解，强调了个人忠诚在两极分化环境中的重要性。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Finance Research Letters BUSINESS, FINANCE-

CiteScore

11.10

自引率

14.40%

发文量

863

期刊介绍： Finance Research Letters welcomes submissions across all areas of finance, aiming for rapid publication of significant new findings. The journal particularly encourages papers that provide insight into the replicability of established results, examine the cross-national applicability of previous findings, challenge existing methodologies, or demonstrate methodological contingencies. Papers are invited in the following areas: Actuarial studies Alternative investments Asset Pricing Bankruptcy and liquidation Banks and other Depository Institutions Behavioral and experimental finance Bibliometric and Scientometric studies of finance Capital budgeting and corporate investment Capital markets and accounting Capital structure and payout policy Commodities Contagion, crises and interdependence Corporate governance Credit and fixed income markets and instruments Derivatives Emerging markets Energy Finance and Energy Markets Financial Econometrics Financial History Financial intermediation and money markets Financial markets and marketplaces Financial Mathematics and Econophysics Financial Regulation and Law Forecasting Frontier market studies International Finance Market efficiency, event studies Mergers, acquisitions and the market for corporate control Micro Finance Institutions Microstructure Non-bank Financial Institutions Personal Finance Portfolio choice and investing Real estate finance and investing Risk SME, Family and Entrepreneurial Finance