Belarusian Economic Research and Outreach Center

Open lecture with Viktar Fedaseyeu and Lev Lvovskiy

 

Open lecture of Viktar Fedaseyeu and Lev Lvovskiy took place on the 31st of August at IPM Business School where they presented their work in progress "Where does the value of political connections come from? Evidence from sudden deaths".

Abstract:

Politically connected firms lose, on average, around 2% of their market value after sudden deaths of legislators to whom these firms make political contributions. We identify firms linked to legislators who replace the deceased politicians and find no evidence that these firms experience concurrent gains in their market value. These results suggest that political connections do not redistribute value across firms.