Desmarais Global Finance Research Centre (DGFRC) Seminar: Michelle Lowry
Michelle Lowry
Drexel University
Corporate Lobbying of Bureaucrats
Date: Friday, November 22, 2024
Time: 10:30-11:45 am
Location: Bronfman Bldg. (1001 Sherbrooke St. West), Room 340
All are cordially invited to attend.
Abstract:
We find that 80% of companies that lobby Congress also lobby executive agencies. Although executive agencies are not beholden to companies for campaign contributions, the agencies are nevertheless influenced by lobbying: companies鈥� lobbying leads to more favorable rules, more special exemptions, more government contracts, and more favorable decisions on enforcement actions. Agencies鈥� bestowment of favors appears to be motivated by opportunities within the private sector: lobbying is significantly greater among agencies that have stronger revolving door relations with the private sector. Following a negative exogenous shock to agency power, the Supreme Court鈥檚 Chevron decision, firms engaged in agency lobbying experienced negative abnormal returns, underscoring the strategic value of lobbying agencies.
