Kim, Chansog; Pantzalis, Christos; Chul Park, Jung - In: Journal of Financial Economics 106 (2012) 1, pp. 196-228
We show that political geography has a pervasive effect on the cross-section of stock returns. We collect election results over a 40-year period and use a political alignment index (PAI) of each state's leading politicians with the ruling (presidential) party to proxy for local firms’...