After CEOs visit White House, companies see boost in stock returns

A new study that utilized the open White House visitor logs of the Obama administration found that companies whose CEOs visited 1600 Pennsylvania Avenue often see a boost in stock returns, according to Harvard Business Review.

Researchers from the University of Illinois and the National Bureau of Economic Research analyzed logs of CEOs who visited the White House between 2009 and 2015 and also looked at those companies' stock returns 10 days before and 40 days after each visit. They found the cumulative abnormal return to be about 0.865 percent during this window.

Two interpretations of these findings that researchers entertain are that either these companies have undue influence over politicians to extract political favors or that these business leaders simply provide relevant information that allows for informed policy decisions, though it is not possible to know for sure what the reasoning is for these increased returns.  

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