Political capabilitiesand financial performance: New publication in the EMR

How can companies exert influence on regulators? What advantage can companies gain from this? In a recent publication in the European Management Review, Dr. Philipp Richter from the Chair of Business Administration, esp. Management Accounting and Control, together with his co-author Benedikt Kapteina (Berlin), examines these questions.

The authors analyze a data set from the European Transparency Register with regard to the lobbying activities of multinational companies. They show that companies specifically build up political capabilities at the level of the European Union and that these are correlated with the profitability of the company. The authors can also show that the positive correlation between firms' political capabilities and their profitability increases for industries with high market dynamics.

The article is available as open access:  Shaping the rules of the game: How political capabilities affect financial performance