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The Quarterly Journal of Economics· 2019Q1

Firm-Level Political Risk: Measurement and Effects*

Tarek A. Hassan, Stephan Hollander, Laurence van Lent, Ahmed Tahoun

Short summary

A new measure of firm-level political risk, based on the share of political risk discussion in quarterly earnings conference calls, shows that firms exposed to such risk cut hiring and investment while increasing lobbying and political donations.

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Field: Strategy and Management

Strategy and ManagementBusiness, Management and Accounting