2014/11/01 by Deniz Igan, Prachi Mishra
Business, Management and Accounting · #Corporate Finance and Governance #Political Influence and Corporate Strategies
paper · doi:10.1086/680933
crossref issued 2014/11/01 · crossref published 2014/11/01 · crossref published-print 2014/11/01 · openalex publication_date 2014/11/01 · crossref created 2015/03/06 · crossref deposited 2018/04/07 · openalex created_date 2025/10/10 · crossref indexed 2026/07/27 · openalex updated_date 2026/08/01
This paper explores the link between the political influence of the financial industry and financial regulation in the run-up to the global financial crisis. We construct a detailed database documenting the lobbying activities, campaign contributions, and political connections of the financial industry from 1999 to 2006 in the United States. We find evidence that spending on lobbying by the financial industry and network connections between lobbyists and legislators were positively associated with the probability of a legislator changing positions in favor of deregulation. The evidence also suggests that hiring lobbyists who had worked for legislators in the past enhanced this link.