This paper provides novel evidence that similarity in employees' political attitudes plays a role in mergers and acquisitions. Using detailed data on individual campaign contributions to Democrats and Republicans, our estimates show that firms are considerably more likely to announce a merger,...

We explore three ways to classify mutual funds as ESG-oriented: by their names, their voting records, and their holdings. ESG-named funds and ESG-voting funds tend to be smaller than non-ESG funds, and spread their investment over more individual companies. They never control more than a quarter...