The Value of Connections in Turbulent Times: Evidence from the United States
We thank Isil Erel, Taylor Nadauld, and René Stulz for sharing data. For helpful comments we thank Josh Angrist, Caroline Hoxby, Suresh Naidu, Francesco Trebbi, and people who provided comments during or after our talks at MIT, Northwestern, Harvard Business School, the International Monetary Fund,...
| Main Authors: | , , , , |
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| Format: | Working Paper |
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Cambridge, MA: Department of Economics, Massachusetts institute of Technology
2013
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| Online Access: | http://hdl.handle.net/1721.1/82633 |
| _version_ | 1826209866206674944 |
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| author | Acemoglu, Daron Johnson, Simon Kermani, Amir Kwak, James Mitton, Todd |
| author_facet | Acemoglu, Daron Johnson, Simon Kermani, Amir Kwak, James Mitton, Todd |
| author_sort | Acemoglu, Daron |
| collection | MIT |
| description | We thank Isil Erel, Taylor Nadauld, and René Stulz for sharing data. For helpful comments we thank Josh Angrist, Caroline Hoxby, Suresh Naidu, Francesco Trebbi, and people who provided comments during or after our talks at MIT, Northwestern, Harvard Business School, the International Monetary Fund, the University of Alberta, BYU, Yale, the University of California at Berkeley, and the 2012 Econometric Society meetings. We are also grateful for constructive suggestions from some former officials. |
| first_indexed | 2024-09-23T14:33:18Z |
| format | Working Paper |
| id | mit-1721.1/82633 |
| institution | Massachusetts Institute of Technology |
| last_indexed | 2024-09-23T14:33:18Z |
| publishDate | 2013 |
| publisher | Cambridge, MA: Department of Economics, Massachusetts institute of Technology |
| record_format | dspace |
| spelling | mit-1721.1/826332019-04-11T10:48:26Z The Value of Connections in Turbulent Times: Evidence from the United States Acemoglu, Daron Johnson, Simon Kermani, Amir Kwak, James Mitton, Todd political connections, economic crises, institutions We thank Isil Erel, Taylor Nadauld, and René Stulz for sharing data. For helpful comments we thank Josh Angrist, Caroline Hoxby, Suresh Naidu, Francesco Trebbi, and people who provided comments during or after our talks at MIT, Northwestern, Harvard Business School, the International Monetary Fund, the University of Alberta, BYU, Yale, the University of California at Berkeley, and the 2012 Econometric Society meetings. We are also grateful for constructive suggestions from some former officials. The announcement of Timothy Geithner as nominee for Treasury Secretary in November 2008 produced a cumulative abnormal return for financial firms with which he had a connection. This return was about 6% after the first full day of trading and about 12% after ten trading days. There were subsequently abnormal negative returns for connected firms when news broke that Geithner’s confirmation might be derailed by tax issues. Excess returns for connected firms may reflect the perceived impact of relying on the advice of a small network of financial sector executives during a time of acute crisis and heightened policy discretion. 2013-12-04T21:13:32Z 2013-12-04T21:13:32Z 2013-11-27 Working Paper http://hdl.handle.net/1721.1/82633 Working paper, Massachusetts Institute of Technology, Dept. of Economics;WP 13-22 application/pdf Cambridge, MA: Department of Economics, Massachusetts institute of Technology |
| spellingShingle | political connections, economic crises, institutions Acemoglu, Daron Johnson, Simon Kermani, Amir Kwak, James Mitton, Todd The Value of Connections in Turbulent Times: Evidence from the United States |
| title | The Value of Connections in Turbulent Times: Evidence from the United States |
| title_full | The Value of Connections in Turbulent Times: Evidence from the United States |
| title_fullStr | The Value of Connections in Turbulent Times: Evidence from the United States |
| title_full_unstemmed | The Value of Connections in Turbulent Times: Evidence from the United States |
| title_short | The Value of Connections in Turbulent Times: Evidence from the United States |
| title_sort | value of connections in turbulent times evidence from the united states |
| topic | political connections, economic crises, institutions |
| url | http://hdl.handle.net/1721.1/82633 |
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