Top management teams and corporate political activity: Do top management teams have influence on corporate political activity?

Abstract

This study explores how senior executives affect firms' propensity to engage in political activity. I propose that firms' participation in the political process depends on their senior executives' involvement in political activity. I examine this framework using data on the campaign contributions of 151 U.S. manufacturing firms during the years 1999–2002. The results suggest that senior executives' involvement in a particular political activity affects their firms' commitment to that political activity, contingent on CEO tenure and top management team heterogeneity.