Questions in Finance

Is a U.S. Sovereign Wealth Fund a Good Idea? With William Megginson

Is a U.S. Sovereign Wealth Fund a Good Idea?
In this episode of 'Questions in Finance,' hosts Kate Holland and Veljko Fotak are joined by guest expert William Megginson, Professor and Price Chair in Finance at the University of Oklahoma, to discuss the concept of Sovereign Wealth Funds (SWFs). The conversation centers around a recent proposal for the creation of an American Sovereign Wealth Fund, initiated by an executive order from Donald J. Trump. Bill Megginson provides an in-depth exploration of what SWFs are, why countries establish them, and the various types that exist. The episode also debates whether a U.S. SWF is a good idea, considering both potential benefits and significant drawbacks. The discussion includes historical performance of SWFs, potential political interference, and alternative ways the U.S. could use its resources for economic and strategic purposes.
 
 
Timeline:
00:00 Is a U.S. Sovereign Wealth Fund a Good Idea?
01:36 Welcome to Questions in Finance
02:14 Introducing Today's Guest, Bill Megginson
08:03 A U.S. SWF? 3 out of 10!
09:08 SWF Definition and Purpose
22:11 SWFs, Strategic Funds, Stabilization Funds
27:22 SWF Underperformance
29:37 Political Distortions and Intergenerational Wealth
40:38 Industrial Policy
45:31 A U.S. SWF? How?
58:31 Issuing Bonds to Fund a SWF?
01:05:43 Government-Owned Venture Capital
01:15:46 Autocrats, Democrats, and SWFs
01:16:52 Space Economics!
01:18:29 Summary
 
Bibliography:
Bortolotti, Bernardo, Veljko Fotak, and William L. Megginson. "The Sovereign Wealth Fund discount: Evidence from public equity investments." The Review of Financial Studies 28, no. 11 (2015): 2993-3035.
Holland, Kateryna. "Government investment in publicly traded firms." Journal of Corporate Finance 56 (2019): 319-342.
Megginson, William L., Xin Yue Zhou, and Robert L. Gholson. "The case against a U.S. Sovereign Wealth Fund." Financial Review 60, no. 1 (2025): 5-12.
 
 
Other Sources:
Stephen Jen in the Financial Times, February 17, 2025, "Don’t dismiss Donald Trump’s idea of a Maga SWF"
https://www.ft.com/content/de289862-d5eb-4376-9c4a-d6e08b6b324b
 
White House SWF Order:
https://www.whitehouse.gov/presidential-actions/2025/02/a-plan-for-establishing-a-united-states-sovereign-wealth-fund/
 
 
Soundtrack:
The soundtrack is based on "Walk on a Funky Street" by MondayHopes. Thanks for the music and keep up the good work! Use is under the Pixabay Content License.

Should Investors Care About Corporate Culture?

Should Investors Care About Corporate Culture?
 
In this episode, hosts Kate Holland and Veljko Fotak delve into the significance of corporate culture and its impact on firm performance and investor portfolios. They discuss the struggle to measure corporate culture, using examples like Steve Jobs at Apple where storytelling helped create an innovative environment. The conversation extends to whether cultural aspects of respect, integrity, teamwork, innovation, and quality influence profitability. They explore research linking corporate culture with stock returns, fraud prevention, and adaptability. The discussion also covers the influence of societal culture on corporate behavior and how factors like regulatory changes and leadership shifts affect corporate culture. They conclude by suggesting that investors should be cautious of firms showing reduced innovation, high-risk cultures, or inconsistent communication of their corporate values.
 
Timeline:
 
00:00 Culture, Stories, and Shared Beliefs
06:37 Welcome to Questions in Finance
07:15 Defining Corporate Culture
12:32 Corporate Culture and Intangible Assets
23:44 Country-level Cultural Traits and Corporate Culture
31:36 Changing Corporate Culture
36:37 Strategic Communication of Cultural Values
46:07 Corporate Culture and Firm Performance
51:27 Fraudulent Firms and Market Penalties
59:32 Risk Culture in Banks
01:02:43 Parking Tickets
01:11:16 Measuring Corporate Culture
01:14:31 Culture Examples: Skechers, Nike, Kodak, Xerox, Sony and More...
01:27:03 Summary & Goodbye!
 
 
Bibliography:
Acemoglu, Daron, and Matthew O. Jackson. "History, expectations, and leadership in the evolution of social norms." The Review of Economic Studies 82, no. 2 (2015): 423-456.
Biggerstaff, Lee, David C. Cicero, and Andy Puckett. "Suspect CEOs, unethical culture, and corporate misbehavior." Journal of Financial Economics 117, no. 1 (2015): 98-121.
Braguinsky, Serguey, and Sergey Mityakov. "Foreign corporations and the culture of transparency: Evidence from Russian administrative data."  Journal of Financial Economics 117 (2015): 139-164.
Chamberlain, Andrew. "Does company culture pay off? Analyzing stock performance of 'Best Places to Work' companies." Glassdoor Research Report (2015).
Crémer, Jacques. "Corporate culture and shared knowledge." Industrial and Corporate Change 2, no. 3 (1993): 351-386.
Edmans, Alex. "Does the stock market fully value intangibles? Employee satisfaction and equity prices." Journal of Financial Economics 101, no. 3 (2011): 621-640.
Lev, Baruch, and Feng Gu. The end of accounting and the path forward for investors and managers. John Wiley & Sons, 2016.
Fahlenbrach, Rüdiger, Robert Prilmeier, and René M. Stulz. "Why does fast loan growth predict poor performance for banks?." The Review of Financial Studies 31, no. 3 (2018): 1014-1063.
Fotak, Veljko, Feng Jack Jiang, Haekwon Lee, and Erik Lie. "Trust and debt contracting: Evidence from the backdating scandal." Journal of Financial and Quantitative Analysis 58, no. 2 (2023): 615-646.
Fisman, Raymond, and Edward Miguel. " Corruption, norms, and legal enforcement: Evidence from diplomatic parking tickets," Journal of Political Economy 115, no. 6, (2007): 1020-1048
Graham, John R., Jillian Grennan, Campbell R. Harvey, and Shivaram Rajgopal. "Corporate culture: Evidence from the field." Journal of Financial Economics 146, no. 2 (2022): 552-593.
Green, T. Clifton, Ruoyan Huang, Quan Wen, and Dexin Zhou. "Crowdsourced employer reviews and stock returns." Journal of Financial Economics 134, no. 1 (2019): 236-251.
Grennan, Jillian. "Communicating culture consistently: Evidence from banks." Available at SSRN 3350645 (2022).
Grullon, Gustavo, George Kanatas, and James Weston. "Religion and corporate (mis) behavior." Available at SSRN 1472118 (2009).
Guiso, Luigi, Paola Sapienza, and Luigi Zingales. "The value of corporate culture." Journal of Financial Economics 117, no. 1 (2015): 60-76.
Hilary, Gilles, and Kai Wai Hui. "Does religion matter in corporate decision making in America?." Journal of Financial Economics 93, no. 3 (2009): 455-473.
Hofstede, Geert. "Dimensionalizing cultures: The Hofstede model in context." Online Readings in Psychology and Culture 2, no. 1 (2011): 8.
Holland, Kateryna, and Esther Im. "Corporate culture messaging and national politics." Available at SSRN 4810373 (2024).
Jiang, Feng, Kose John, C. Wei Li, and Yiming Qian. "Earthly reward to the religious: religiosity and the costs of public and private debt." Journal of Financial and Quantitative Analysis 53, no. 5 (2018): 2131-2160.
Karolyi, G. Andrew, and Alvaro G. Taboada. "Regulatory arbitrage and cross‐border bank acquisitions." The Journal of Finance 70, no. 6 (2015): 2395-2450.
Li, Kai, Mai Feng, Rui Shen, and Xinyan Yan. "Measuring corporate culture using machine learning." The Review of Financial Studies 34, (2021): 3265-3315.
Lins, Karl V., Lukas Roth, Henri Servaes, and Ane Tamayo. "Sexism, culture, and firm value: evidence from the Harvey Weinstein scandal and the# MeToo movement." Journal of Accounting Research 62, no. 5 (2024): 1989-2035.
Mironov, Maxim. "Should one hire a corrupt CEO in a corrupt country?" Journal of Financial Economics 117 (2015): 29-42.
Symitsi, Efthymia, Panagiotis Stamolampros, and George Daskalakis. "Employees’ online reviews and equity prices." Economics Letters 162 (2018): 53-55.
 
Online Sources:
Sull, Donald, Charles Sull, and Andrew Chamberlain. "Measuring Culture in Leading Companies"
https://sloanreview.mit.edu/projects/measuring-culture-in-leading-companies/#chapter-5
 
Soundtrack:
The soundtrack is based on "Walk on a Funky Street" by MondayHopes. Thanks for the music and keep up the good work! Use is under the Pixabay Content License.

Do Pension Bailouts Create Moral Hazard? With Michael Dambra

Do Pension Bailouts Create Moral Hazard? With Michael Dambra
 
In this episode of 'Questions in Finance,' host Veljko Fotak dives into the complex world of moral hazard and pension bailouts with guest Michael Dambra, the Kenneth Colwell Chair of Accounting and Law at the University at Buffalo. They discuss the concept of moral hazard, its historical context, and its implications in modern economics, particularly focusing on recent pension bailouts under the American Rescue Plan (ARP). The conversation sheds light on how bailout expectations can alter financial behavior and risk-taking in the pension fund sector. Mike and Veljko discuss potential alternatives, but also political implications: why this plan was such an ineffective vote-buying scheme, and why taxpayers are the big losers.
 
 
Timeline:
 
00:00 Minus Kate, plus Mike
01:16 Understanding Moral Hazard
02:56 Historical Context of Moral Hazard
06:41 Welcome to Questions in Finance!
07:22 Mike Dambra's Background and Research
08:43 The Crisis in Pension Funding
18:18 The American Rescue Plan and the Butch Lewis Act
24:26 Research Design and Findings
35:01 Which Funds Get Bailouts?
38:30 Behavior of Plans Receiving Bailouts
41:06 Assessment and Alternatives
43:15 Comparing Pension and Banking Sectors
47:37 More on Alternatives
49:11 Bailouts, Politics, and Spin
51:36 Winners and Losers of the Bailout
54:42 Political Bias in Research
01:00:54 Who Cares?
01:05:41 Can Bailouts Impose Discipline?
01:08:58 How about a National Pension System?
01:09:49 Defined Benefits vs. Defined Contributions
01:11:11 Final Thoughts and Future Plans
 
 
Bibliography:
 
Arrow, Kenneth J. "Uncertainty and the welfare economics of medical care." American Economic Review 53, no. 5 (1963): 941-973.
 
Dambra, Michael, Phillip J. Quinn, and John Wertz. "Economic consequences of pension bailouts: Evidence from the American Rescue Plan." Available at SSRN 4406502 (2023).
 
Novy‐Marx, Robert, and Joshua Rauh. "Public pension promises: How big are they and what are they worth?." The Journal of Finance 66, no. 4 (2011): 1211-1249.
 
 
Online Sources:
 
Department of Labor Report Links:
http://www.dol.gov/newsroom/releases/ebsa/ebsa2024
 
 
 
Soundtrack:
 
The soundtrack is based on "Walk on a Funky Street" by MondayHopes. Thanks for the music and keep up the good work! Use is under the Pixabay Content License.

Is Short Selling Evil?

Is Short Selling Evil?
 
In this episode, Kate and Veljko delve into the contentious topic of short selling. The discussion begins with an explanation of viatical settlements and transitions into an in-depth exploration of short selling—its mechanisms, benefits, and ethical implications. The hosts examine the historical and legal controversies surrounding it and present empirical research highlighting its role in market efficiency and managerial discipline. They also touch on notable anecdotes, including the GameStop saga and the Vatican’s criticism of financial markets, and ultimately aim to dispel common misconceptions about short selling by emphasizing its overall positive impact on financial markets.
 
00:00 Viatical Settlements
09:42 Welcome to Questions in Finance!
10:20 Defining Short Selling
14:29 Put Options Vs. Short Sales
15:53 Risk Exposure
17:07 Negative Information, Prices, and the Case of GameStop
32:11 Wirecard
39:14 The Pope and the Chairman Walk Into a Bar...
48:32 Pricing Efficiency, Bubbles
59:13 Short Sales and Corporate Governance
01:15:42 Empty Voting
01:19:29 Summarizing, Wrapping Up
 
 
Bibliography:
 
Bargeron, Leonce, and Alice Bonaime. "Why do firms disagree with short sellers? Managerial myopia versus private information." Journal of Financial and Quantitative Analysis 55, no. 8 (2020): 2431-2465
 
Battalio, Robert, and Paul Schultz. "Options and the bubble." The Journal of Finance 61, no. 5 (2006): 2071-2102.
 
Beber, Alessandro, and Marco Pagano. "Short‐selling bans around the world: Evidence from the 2007–09 crisis." The Journal of Finance 68, no. 1 (2013): 343-381.
 
Boehmer, Ekkehart, and Juan Wu. "Short selling and the price discovery process." The Review of Financial Studies 26, no. 2 (2013): 287-322.
 
Bris, Arturo, William N. Goetzmann, and Ning Zhu. "Efficiency and the bear: Short sales and markets around the world." The Journal of Finance 62, no. 3 (2007): 1029-1079.
 
Brogaard, Jonathan, Terrence Hendershott, and Ryan Riordan. "High frequency trading and the 2008 short-sale ban." Journal of Financial Economics 124, no. 1 (2017): 22-42.
Brunnermeier, Markus K., and Martin Oehmke. "Predatory short selling." Review of Finance 18, no. 6 (2014): 2153-2195.
 
Chen, Yi-Wen, Sheng-Syan Chen, and Robin K. Chou. "Short-sale constraints and options trading: Evidence from Reg SHO." Journal of Financial and Quantitative Analysis 55, no. 5 (2020): 1555-1579.
 
Curtis, Asher, and Neil L. Fargher. "Does short selling amplify price declines or align stocks with their fundamental values?." Management Science 60, no. 9 (2014): 2324-2340.
 
Fang, Vivian W., Allen H. Huang, and Jonathan M. Karpoff. "Short selling and earnings management: A controlled experiment." The Journal of Finance 71, no. 3 (2016): 1251-1294.
 
Fotak, Veljko, Vikas Raman, and Pradeep K. Yadav. "Fails-to-deliver, short selling, and market quality." Journal of Financial Economics 114, no. 3 (2014): 493-516.
 
Haruvy, Ernan, and Charles N. Noussair. "The effect of short selling on bubbles and crashes in experimental spot asset markets." The Journal of Finance 61, no. 3 (2006): 1119-1157.
 
Hu, Henry TC, and Bernard Black. "The new vote buying: Empty voting and hidden (morphable) ownership." S. Cal. L. Rev. 79 (2005): 811.
 
Massa, Massimo, Bohui Zhang, and Hong Zhang. "The invisible hand of short selling: Does short selling discipline earnings management?." The Review of Financial Studies 28, no. 6 (2015): 1701-1736.
 
Rapach, David E., Matthew C. Ringgenberg, and Guofu Zhou. "Short interest and aggregate stock returns." Journal of Financial Economics 121, no. 1 (2016): 46-65.
 
Scheinkman, Jose A., and Wei Xiong. "Overconfidence and speculative bubbles." Journal of Political Economy 111, no. 6 (2003): 1183-1220.
 
 
Media:
CFTC Letter: https://www.cftc.gov/PressRoom/PressReleases/7761-18
 
Soundtrack:
The soundtrack is based on "Walk on a Funky Street" by MondayHopes. Thanks for the music and keep up the good work! Use is under the Pixabay Content License.

Do Woke Firms Go Broke? Part 2

Do Woke Firms Go Broke? Part 2
 
In this episode of 'Questions in Finance,' university professors Kate Holland and Veljko Fotak delve into the 'S' (social) aspect of ESG (Environmental, Social, and Governance) in corporate social responsibility. They discuss the concept of 'double bottom line' companies that care about both operating profits and social responsibility, highlighting various facets of social responsibility including gender equality, parental leave policies, and worker safety. The hosts review academic studies on these topics, explore the impact of corporate scandals on reputation and valuation, and debate the performance of anti-woke funds. The episode concludes with a hopeful message that socially responsible firms do not underperform, illustrating that firms can be good corporate citizens without sacrificing profitability.
 
 
 
Timeline:
 
00:00 Do Double-Bottom-Line Firms Bottom Out?
01:36 Welcome
02:14 Defining "Social"
03:18 Labor-Friendly Policies, Equity, and Firm Value
09:58 Causality and the Maslow-Fotak-Holland Hierarchy of Corporate Needs
25:33 Corporate Scandals and Social Reputation
31:54 The Cost of Murder
44:42 Anti-Woke Funds
53:43 Not all Customers and Investors are Alike
57:54 Wrapping Up - A Note of Optimism
 
 
 
Bibliography:
 
Ahern, Kenneth R., and Amy K. Dittmar. "The changing of the boards: The impact on firm valuation of mandated female board representation." The Quarterly Journal of Economics 127, no. 1 (2012): 137-197.
 
Cohn, Jonathan, B. and Malcom I. Wardlaw. "Financing constraints and workplace safety." The Journal of Finance 71, no. 5 (2016); 2017-2058.
 
Eckbo, B. Espen, Knut Nygaard, and Karin S. Thorburn. "Valuation effects of Norway’s board gender-quota law revisited." Management Science 68, no. 6 (2022): 4112-4134.
 
Edmans, Alex. "The link between job satisfaction and firm value, with implications for corporate social responsibility." Academy of Management Perspectives 26, no. 4 (2012): 1-19.
 
Fauver, Larry, Michael B. McDonald, and Alvaro G. Taboada. "Does it pay to treat employees well? International evidence on the value of employee-friendly culture." Journal of Corporate Finance 50 (2018): 84-108.
 
Fotak, Veljko, Kateryna Holland, Vishal Sharma. "The cost of murder: Shareholder response to a social reputation shock." Working Paper.
 
Friede, Gunnar, Timo Busch, and Alexander Bassen. "ESG and financial performance: aggregated evidence from more than 2000 empirical studies." Journal of Sustainable Finance & Investment 5, no. 4 (2015): 210-233.
 
Knittel, Christopher R., and Victor Stango. "Celebrity endorsements, firm value, and reputation risk: Evidence from the Tiger Woods scandal." Management Science 60, no. 1 (2014): 21-37.
 
Gertsberg, Marina, Johanna Mollerstrom, and Michaela Pagel. "Gender quotas and support for women in board elections." Working Paper.
 
Lins, Karl V., Lukas Roth, Henri Servaes, and Ann Tamayo. "Sexism, culture, and firm value: Evidence from the Harvey Weinstein scandal and the #MeToo movement." Journal of Accounting Research, (2024), forthcoming
 
Liu, Tim, Christos Makridis, Paige Ouimet, and Elena Simintzi. "The distribution of non-wage benefits: Maternity benefits and gender diversity." Review of Financial Studies, 36, (2023): 194-234.
 
Sonnenfeld, Jeffrey, Steven Tian, Steven Zaslavsky, Yash Bhansali, and Ryan Vakil. "It pays for companies to leave Russia." Working Paper.
 
 
 
Online Sources and Media:
 
Amrith Ramkumar, Amit (2022), "Anti-ESG activist investor urges Chevron to increase oil production, Wall Street Journal, September 6, 2022."
https://www.wsj.com/articles/anti-esg-activist-investor-urges-chevron-to-increase-oil-production-11662494769
 
Rajogpal, Shivaram, "Does The Anti-Woke MAGA ETF Inadvertently Make The Case For ESG?" Forbes, October 3, 2022.
https://www.forbes.com/sites/shivaramrajgopal/2022/10/03/does-the-anti-woke-maga-etf-inadvertently-make-the-case-for-esg/
 
 
 
Soundtrack:
 
The soundtrack is based on "Walk on a Funky Street" by MondayHopes. Thanks for the music and keep up the good work! Use is under the Pixabay Content License.

Do Woke Firms Go Broke? Part 1

Do Woke Firms Go Broke? Part 1
 
In this episode of 'Questions in Finance,' university professors Kate Holland and Veljko Fotak explore the intersection of corporate profitability and social responsibility. They examine whether companies prioritizing ESG (Environmental, Social, and Governance) or CSR (Corporate Social Responsibility) practices can also deliver strong financial returns. Using historical financial perspectives and empirical evidence, they analyze corporate earnings, stock returns, and the effects of governance on firm performance. The episode delves into various aspects of ESG, including environmental impact and 'greenium'—the premium returns of environmentally conscious firms—highlighting the positive correlation between good ESG practices and financial success. Featuring studies and case examples, this comprehensive discussion addresses the financial and ethical dynamics of socially responsible investing in modern markets.
 
 
Timeline:
 
00:00 Introduction and Allbirds
03:42 Exploring the Concept of 'Woke' Firms
08:30 A Narrow View of Corporate Performance
14:05 Governance and Its Impact on Returns
21:13 Environmental Policies and Firm Returns
27:19 Correlation vs. Causation in ESG Performance
28:45 Historical Context of ESG Concerns
30:24 Back from Break: Discussing Corporate Responsibility
35:52 Green Firms in Brown Industries
44:31 Summarizing ESG Performance
45:49 Wrapping Up and Looking Ahead
 
 
Bibliography:
 
Bolton, Patrick, and Marcin Kacperczyk. "Do investors care about carbon risk?." Journal of Financial Economics 142, no. 2 (2021): 517-549.
 
Chan, Pak To, and Terry Walter. "Investment performance of “environmentally-friendly” firms and their initial public offers and seasoned equity offers." Journal of Banking & Finance 44 (2014): 177-188.
 
Griffin, Dale, Omrane Guedhami, Kai Li, and Guangli Lu. "National culture and the value implications of corporate environmental and social performance." Journal of Corporate Finance 71 (2021): 102123.
 
Derwall, Jeroen, Nadja Guenster, Rob Bauer, and Kees Koedijk. "The eco-efficiency premium puzzle." Financial Analysts Journal 61, no. 2 (2005): 51-63.
 
Friede, Gunnar, Timo Busch, and Alexander Bassen. "ESG and financial performance: aggregated evidence from more than 2000 empirical studies." Journal of Sustainable Finance & Investment 5, no. 4 (2015): 210-233.
 
Gompers, Paul, Joy Ishii, and Andrew Metrick. "Corporate governance and equity prices." The Quarterly Journal of Economics 118, no. 1 (2003): 107-156.
 
Houston, Joel F., Sehoon Kim, and Boyuan Li. "One Hundred and Thirty Years of Corporate Responsibility." Working Paper (2024).
 
Pastor, Lubos, Robert F. Stambaugh, and Lucian A. Taylor. "Dissecting green returns." Journal of Financial Economics 146, no. 2 (2022): 403-424.
 
 
Soundtrack:
 
The soundtrack is based on "Walk on a Funky Street" by MondayHopes. Thanks for the music and keep up the good work! Use is under the Pixabay Content License.
 

The Presidential Puzzle: Does the US Economy Perform Better under Democrat or Republican Presidents?

The Presidential Puzzle: Does the US Economy Perform Better under Democrat or Republican Presidents?
In this episode of 'Questions in Finance,' university professors Kate Holland and Veljko Fotak dive into an intriguing economic puzzle: why does public opinion favor Republicans as better managers of the economy, while macroeconomic indicators, corporate performance, and stock market returns generally show better outcomes under Democrat presidencies? And what explains some of the gap in performance?
The discussion, grounded in academic research, explores various metrics, at the macroeconomic, firm, and market levels and the strength and robustness of findings.
Kate and Veljko delve into common explanations, debunk the flawed ones, and emphasize the role of risk-aversion cycles and the timing of the Korean war and crude-oil shocks as having favored Democrat presidencies.
The episode concludes with an exploration of party identity and political polarization, touching on the complex factors influencing electoral success and public perceptions.
 
Timeline:
00:00 Introduction and Personal Anecdotes
01:17 Questions in Finance Podcast Introduction
02:08 Economic Performance Under Different Presidents
02:46 Public Perception vs. Economic Reality
05:04 The Presidential Puzzle
09:52 Diving into the Evidence
18:35 Corporate Performance Analysis
36:35 Exploring Explanations for Economic Trends
37:05 Cherry-Picking Time Periods: Valid or Not?
40:52 Impact of Crude Oil Shocks and the Korean War
43:51 Inherited Economic Conditions and Lead-Lag Effects
45:48 Risk Cycles and Economic Performance
50:36 Policy Explanations: Congress and Corporate Outcomes
59:34 Behavioral Explanations: Over-Optimism and Euphoria
01:03:20 Summarizing the Presidential Puzzle
01:06:06 Republican Electoral Success Despite Economic Trends
01:10:04 Party Identity and Political Polarization
01:11:45 Conclusion and Future Topics
 
 
Bibliography:
Alesina, Alberto and Howard Rosenthal. "Partisan politics, divided government, and the economy." Cambridge University Pres, 1995.
Alesina, Alberto, Nouriel Roubini, and  Gerald D. Cohen. "Political cycles and the macroeconomy." MIT Press, 1997.
Belo, Frederico, Vito D. Gala, and Jun Li. "Government spending, political cycles, and the cross section of stock returns." Journal of Financial Economics 107, no. 2 (2013): 305-324.
Blinder, Alan S., and Mark W. Watson. "Presidents and the US economy: An econometric exploration." American Economic Review 106, no. 4 (2016): 1015-1045.
Holland, Kateryna, and Esther Im. "Corporate Cash Flow Outcomes Across Presidencies: Still a Presidential Puzzle." Working paper.
Mian, Atif, Amir Sufi, and Nasim Khoshkhou. "Partisan bias, economic expectations, and household spending." Review of Economics and Statistics 105, no. 3 (2023): 493-510.
Potrafke, Niklas. "Government ideology and economic policy-making in the United States—a survey." Public Choice 174 (2018): 145-207.
Santa‐Clara, Pedro, and Rossen Valkanov. "The presidential puzzle: Political cycles and the stock market." The Journal of Finance 58, no. 5 (2003): 1841-1872.
Snowberg, Erik, Justin Wolfers, and Eric Zitzewitz. "Partisan impacts on the economy: evidence from prediction markets and close elections." The Quarterly Journal of Economics 122, no. 2 (2007): 807-829.
 
Online Sources:
EPI Report: https://epiaction.org/2024/04/02/economic-performance-is-stronger-when-democrats-hold-the-white-house/#full-report
Belfer Center Study: https://www.belfercenter.org/publication/historical-puzzle-us-economic-performance-under-democrats-vs-republicans
 
Soundtrack:
The soundtrack is based on "Walk on a Funky Street" by MondayHopes. Thanks for the music and keep up the good work! Use is under the Pixabay Content License.