TY  - RPRT
        AU  - Leonardi, Marco
AU  - Mossucca, Rossella
AU  - Schivardi, Fabiano
AU  - Severgnini, Battista
        TI  - Gains from Early Support of a New Political Party
        PY  - 2019/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 12549
        UR  - https://www.iza.org/publications/dp12549
        AB  - We study the potential benefits and mechanisms of firms' political connections by analyzing the Italian experience, where, in the early nineties, Silvio Berlusconi, a rich TV tycoon, became the leader of the conservative political coalition. Using firm-level data, we find that the 101 companies supporting Berlusconi's successful bid to become prime minister did better than controls in terms of sales and employment but not of productivity. The results are confirmed when we instrument the decision to support Berlusconi with electoral outcomes in the 1921 elections. We also find suggestive evidence that the supporters' superior performance is stronger in sectors with high external financial dependence and high advertising intensity.
        KW  - productivity
KW  - political connections
KW  - policy regulation
        ER  -