From 2005 to 2010, the average S&P 500 firm had seven members of Congress who owned stock in the firm, and some companies had closer to 100 members owning stock, according to a new study co-authored by a Walton College assistant professor of management.
The study also found that firms in which a greater percentage of lawmakers invest in a given year performed significantly better the subsequent year.
“Each percentage of congressional membership owning stock was worth about a 1 percent improvement in return on assets,” said Jason Ridge, Walton College assistant professor of management. “We think this suggests that it’s possible that members of Congress use their influence to benefit firms in which they invest.”
Read the entire article at Arkansas Newswire.