Atanassov, Julian; Julio, Brandon; Leng, Tiecheng - In: The review of financial studies 37 (2024) 10, pp. 2937-2970
We use close gubernatorial elections as a quasi-natural experiment to document a positive effect of political uncertainty on firm-level R&D. This finding is in contrast to the existing literature documenting a negative impact of political uncertainty on capital investment. We examine potential...