Gains from early support of a new political party / Marco Leonardi (University of Milan and IZA), Rossella Mossucca (LearLab), Fabiano Schivardi (Luiss, EIEF and CEPR), Battista Severgnini (Copenhagen Business School) ; IZA Institute of Labor Economics
VerfasserLeonardi, Marco ; Mossucca, Rossella ; Schivardi, Fabiano ; Severgnini, Battista
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, August 2019
Elektronische Ressource
Umfang1 Online-Ressource (28 Seiten) : Diagramme
SerieDiscussion paper ; no. 12549
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Gains from early support of a new political party [0.51 mb]
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We study the potential benefits and mechanisms of firms' political connections by analyzing the Italian experience, where, in the early nineties, Silvio Berlusconi, a rich TV tycoon, became the leader of the conservative political coalition. Using firm-level data, we find that the 101 companies supporting Berlusconi's successful bid to become prime minister did better than controls in terms of sales and employment but not of productivity. The results are confirmed when we instrument the decision to support Berlusconi with electoral outcomes in the 1921 elections. We also find suggestive evidence that the supporters' superior performance is stronger in sectors with high external financial dependence and high advertising intensity.