Tuesday, October 26, 2010

Papers from the FMA conference in NYC-Part 2

More fast reviews of some papers/sessions that were at last week's FMA conference which was in NYC.
Politics matter.   Kim, Panzalis, and Park create a Political Alignment Index (PAI) that looks at whether state and federal representatives (House, Senate, Governor, and State Legislature) are in "alignment" with the president. They then document a positive return for firms in high PAI states (a

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