This paper examines the consequences of powerful political connections for local governments. We find that governments located within the constituencies of, and thus connected to, powerful congressional members reduce their stewardship over public resources. Using plausibly-exogenous declines in...

This paper examines the consequences of powerful political connections for local governments. We find that governments located within the constituencies of, and thus connected to, powerful congressional members reduce their stewardship over public resources. Using plausibly-exogenous declines in...

Do firms strategically use advertising campaigns when subject to the threat of political costs? Communication via advertising can assuage public concerns, which, in turn, reduces the pressure on elected officials to impose political costs on the industry. We identify expected political costs...

Theories of congressional dominance contend that regulatory agencies can be captured by the politicians that oversee them. We examine whether control systems and transparency constrain such capture. Using the United States Patent and Trademark Office (USPTO) as a setting, we begin by providing...

We examine whether municipal market participants' sensitivity to changes in local home values varies with the quality of local governments' financial reports. We find the credit ratings and bond yields of governments that are required to comply with GAAP are less sensitive to changes in local...

We use the relaxation of interstate branching restrictions under the Interstate Banking and Branching Efficiency Act (IBBEA) to examine how increases in competition affect incumbents' voluntary disclosure choices. States implemented the IBBEA over several years and to varying degrees, allowing...

I investigate whether access to fundamental information enhances retail investors' bargaining power, reducing the premium that small municipal bond investors pay over large investors. I find a reduction in this small trade premium after the introduction of an online disclosure repository that...