– relationship between CPA(lobbying) and firm performance
how lobbying can impact firms : obtaining rate increases, earmarks, new import tariffs/protectionism
variables used will be : whether a firm has an office in Brussels, if a firm hires an external party to do its lobbying and if a firm is associated with an industry association that lobbies
The dummy variable has a value of 1 if a firm lobbies and 0 if it does not.
Dependant variable ; Tobin’s Q is measured as the book value of assets divided by the end-of-year market value of common stock
larger firms are more likely to lobby the Financial Times list of the 500 largest European firms by firm value is used
e European transparency register6 has a large amount of information surrounding lobbying activities of firms
example formula : Yt = α + β1 Lobbying dummyt + β2 Tobin’s Qt-1 + β3 Ln assetst + β4 industry dummies + u
example paper similar : https://feb.studenttheses.ub.rug.nl/9666/1/Thesis_C_Dreue.pdf
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