RELATIONSHIP BETWEEN POLITICAL PREFERENCE AND CORPORATION PERFORMANCE

This paper conducted an empirical analysis of the correlation between political preference and financial performance. By using data from 2nd vote app and WRDS database we analyze the relation between abnormal return and political lean score. We find that there is relation between a firm's political socre and its profitablity. Specifically, companies leaning Republican have a higher probability of performing well financially compared to companies leaning Democrat. Furthermore, companies in the middle of the spectrum tend to have average performance.