Discussion Paper Details

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Title: The Political Polarization of Corporate America

Author(s): Vyacheslav Fos, Elisabeth Kempf and Margarita Tsoutsoura

Publication Date: June 2022


Programme Area(s): Financial Economics and Political Economy

Abstract: Executive teams in U.S. firms are becoming increasingly partisan. We establish this new fact using political affiliations from voter registration records for top executives of S&P 1500 firms between 2008 and 2020. The new fact is explained by both an increasing share of Republican executives and increased assortative matching by executives on political affiliation. Departures of politically misaligned executives are value-destroying for shareholders, implying the increasing political polarization of corporate America may not be in the financial interest of shareholders.

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Bibliographic Reference

Fos, V, Kempf, E and Tsoutsoura, M. 2022. 'The Political Polarization of Corporate America'. London, Centre for Economic Policy Research.