On Identifying Antecedents and Consequences of Corporate Lobbying
Project Description

Firms’ lobby activities are non-market strategies to make their environments or circumstances favorable in terms of their business goals. Since lobbying expenditures are hard to be firm-specific (i.e., a focal firms’ lobby spending can be related to other firms as well), this study conceptualizes the lobbying activities as an indirect goal-oriented investment. For example, if Microsoft do lobby activities on the cloud act and pay off in some cases (increased market share, launching a new service), other software companies may be affected either negatively or positively. Although extensive research on the ITbusiness value has examined the consequences of IT investment by employing IT capabilities, IT innovation, or firm value as outcome variables, the value of lobby investment on IT area and impact of a firm’s innovation remain unclear and ambiguous. To capture these dynamics, this study investigates the impact of a firm’s lobbying expenditure on a firm’s own innovation activities and its rivals’ innovation activities. Also, this study examines inter-firm dynamics within rival relationship as well as within same supply chain network (i.e., buyer-seller relationship).

Supervisor
LEE Dongwon
Quota
2
Course type
UROP1000
Applicant's Roles

- Cleaning corporate lobbying data
- Constructing corporate lobbying database
- Matching corporate lobbying database with firm-level data from COMPUSTAT
- Analyzing data to identify antecedents and consequences of corporate lobbying

Applicant's Learning Objectives

- Hands-on experience of fundamental data analysis
- Learning how to cleaning and construct database for social science research
- Learning fundamental topics related to data science
- Applying basic data science techniques to academic research
- Understanding the nature of corporate lobbying

Complexity of the project
Challenging