Ties That Bind and Grind? Investor Reactions to Politician Appointments to Corporate Boards

Although the appointment of politicians to corporate boards is a highly prevalent corporate political strategy, empirical evidence remains inconclusive as to whether and how such appointments create value for firms and their shareholders. Drawing on the director role literature, we argue that politician-directors are likely to serve as valuable resource providers but are less likely to serve as guardians of shareholder interests. In light of...