Hafeez, Bilal  ORCID: https://orcid.org/0000-0003-3628-0860, Tosun, Onur Kemal ORCID: https://orcid.org/0000-0003-2551-1408 and Eshraghi, Arman ORCID: https://orcid.org/0000-0002-7406-1725
2026.
The market value of political alignment: Recent U.S. evidence.
Finance Research Letters
100
, 109758.
10.1016/j.frl.2026.109758
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Official URL: https://doi.org/10.1016/j.frl.2026.109758
Abstract
Examining publicly-listed U.S. firms, we illustrate investor reactions to the removal of the SEC’s nonpartisan Enforcement Director’s authority on March 10, 2025. Over the subsequent three days, Republican-leaning firms gain an average of around $139 million in market value, representing 2.5% of the median firm market cap in our sample. We show equity investors reward alignment with the incumbent administration while imposing no penalty for misalignment. These findings are more pronounced when a firm’s CEO and CFO are both Republican-leaning, highlighting the role of political alignment in market valuations, particularly in times of regulatory restructuring.
| Item Type: | Article |
|---|---|
| Date Type: | Publication |
| Status: | Published |
| Schools: | Schools > Business (Including Economics) |
| Additional Information: | RRS policy applied |
| Publisher: | Elsevier BV |
| ISSN: | 1544-6123 |
| Date of First Compliant Deposit: | 11 March 2026 |
| Date of Acceptance: | 4 March 2026 |
| Last Modified: | 06 May 2026 14:30 |
| URI: | https://orca.cardiff.ac.uk/id/eprint/185594 |
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