Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/244689 
Year of Publication: 
2020
Series/Report no.: 
LawFin Working Paper No. 9
Publisher: 
Goethe University, Center for Advanced Studies on the Foundations of Law and Finance (LawFin), Frankfurt a. M.
Abstract: 
We present novel evidence on the value of cross-border political access. We analyze data on meetings of US multinational enterprises (MNEs) with European Commission (EC) policymakers. Meetings with Commissioners are associated with positive abnormal equity returns. We study channels of value creation through political access in the areas of regulation and taxation. US enterprises with EC meetings are more likely to receive favorable outcomes in their European merger decisions and have lower effective tax rates on foreign income than their peers without meetings. Our results suggest that access to foreign policymakers is of substantial value for MNEs.
Subjects: 
Cross-border political access
European Commission
firm value
JEL: 
D72
G30
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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