Betting on Hitler - the Value of Political Connections in Nazi Germany

  title={Betting on Hitler - the Value of Political Connections in Nazi Germany},
  author={Hans Joachim Voth and Thomas P. Ferguson},
  journal={CEPR Discussion Paper Series},
This paper examines the value of connections between German industry and the Nazi movement in early 1933. Drawing on previously unused contemporary sources about management and supervisory board composition and stock returns, we find that one out of seven firms, and a large proportion of the biggest companies, had substantive links with the National Socialist German Workers’ Party. Firms supporting the Nazi movement experienced unusually high returns, outperforming unconnected ones by 5% to 8… 
The value of active politicians on supervisory boards: evidence from the Berlin stock exchange and the parliament in interwar Germany
ABSTRACT We provide the first overview over all political connections of firms via current Members of Parliament on supervisory boards and board of directors listed on the Berlin stock exchange in
Impacts of Political Majorities on French Firms: Electoral Promises or Friendship Connections?
This paper analyzes the impact of changes in the winning chances of candidates running for the 2007 French presidential election on abnormal stock returns of firms that could benefit from a
Business Elites, Political Connections, and Economic Entrenchment: Evidence from Belgium 1858-1909
Pre-World War I Belgium was characterized by a strong concentration of power in the hands of a small elite with ties to business, banks, and politics. We find that political and upper class
Political Connectedness and Firm Performance: Evidence from Germany
Abstract This paper investigates politically connected firms in Germany. With the introduction of a new transparency law in 2007, information on additional income sources for all members of the
Precious Neighbors: The Value of Co-locating with the Government
I analyze the firm value of co-locating with the government. Since neither firms nor gov- ernments move randomly, this value is normally hard to identify. I solve this problem by examining a unique
Political Reforms and the Causal Impact of Blood- Related Politicians on Corporate Performance
Estimating the causal effect of political connectio ns on corporate performance is challenging due to lack of appropriate counterfactu als. Applying difference in difference, matching and regression
Crony Capitalism in Egypt
Abstract The paper studies the nature and extent of Egyptian “crony” capitalism by comparing the corporate performance and the stock market valuation of politically connected and unconnected firms,
Political Connections and Insider Trading
This paper investigates whether political connections affect individuals’ propensity to engage in illegal activities in financial markets. We use the 2007 French presidential election as marker of
Political Connections and Firm Value: Evidence from Close Gubernatorial Elections
Using the regression discontinuity design of close gubernatorial elections in the U.S., we identify a significant and positive impact of the social networks of corporate directors and politicians on


Estimating the Value of Political Connections
While political connections have been widely discussed in the literature on corruption, little work has been done to assess the value of these connections. This paper uses the Jakarta Stock
Cronyism and capital controls: evidence from Malaysia☆
Political Connections and Corporate Bailouts
We analyze the likelihood of government bailouts of 450 politically connected firms from 35 countries during 1997‐2002. Politically connected firms are significantly more likely to be bailed out than
The rise of interlocking directorates in imperial Germany
Bankers are thought by many to have played an important role as entrepreneurs and overseers in German industrialization, identifying promising new industries and investments, offering managerial
Cronyism and Capital Controls: Evidence from Malaysia
The initial impact of the Asian financial crisis in Malaysia reduced the expected value of government subsidies to politically favored firms. Of the estimated $60 billion loss in market value for
Politically Connected Firms
Examination of firms in 47 countries shows a widespread overlap of controlling shareholders and top officers who are connected with national parliaments or governments, particularly in countries with
History as Reflected in Capital Markets: The Case of World War II
Historical events are reflected in asset prices. We analyze movements in the price of bonds issued by five European governments and traded on the Swiss bourse between 1928 and 1948, with special
Campaign Contributions as Investments: The U.S. House of Representatives, 1980-1986
  • J. Snyder
  • Economics
    Journal of Political Economy
  • 1990
This paper treats the market for special-interest campaign contributions and political "favors" as a simple asset market. The model yields a simple equilibrium relationship among three variables: the
German Big Business and the Rise of Hitler
Did big business play a crucial role in Adolf Hitler's rise to power? Did German capitalists undermine the Weimaqr Republic, finance the Nazi Party, and use their influence on behalf of Hitler's