Political affiliation and stock market returns

• Grant number: 24/14971-2
• Support Opportunities: Scholarships abroad - Research
• Start date: October 21, 2024
• End date: January 20, 2025
• Field of knowledge: Applied Social Sciences - Administration - Business Administration
• Principal Investigator: Alan de Genaro Dario
• Grantee: Alan de Genaro Dario
• Host Investigator: Max Miller
• Host Institution: Escola de Administração de Empresas de São Paulo (EAESP). Fundação Getúlio Vargas (FGV). São Paulo , SP, Brazil
• Institution abroad: Harvard Business School, United States

Abstract

The aim of this project is to investigate whether politically exposed individuals (PEPs) enjoy any benefits when trading stocks. To achieve this objective, we created a comprehensive dataset of interactions between individuals and the political sphere. As part of an arrangement with CVM, we have access to all transactions of a subset of PEPs from our initial dataset (around 95%), allowing us to directly connect individuals who are politically exposed with their trades in stocks and single-name stock options. Our sample includes daily information from January 2012 to December 2020.