[Research Seminar 2018.08.27]Political capital: An analysis of Congress voting on the financial regulationsSpeaker : Yong-Cheol Kim(Associate Professor of Finance)
Both politicians and companies gain from political connections. We find that the representative of the House who vote for deregulations are more likely to end up in business jobs after leaving the Congress. The analysis of voting behavior in a major financial regulation – Gramm-Leach-Bliley Act of 1999 – show the members of Congress use voting to enhance their career. The results are consistent with public rent-seeking of politicians, and show that political capital is as valuable for politicians as for companies.