Introduction :
– explaining what is lobbying
– how lobbying can impact firms/firm performance : obtaining rate increases, earmarks, new import tariffs/protectionism
Main body :
– larger firms are more likely to lobby the Financial Times list of the 500 largest European firms by firm value is used
(European transparency register6 has a large amount of information surrounding lobbying activities of firms)
– 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
– equation for tobins q analysis to see how lobbying impacts the firm performance
– example equation Yt = α + β1 Lobbying dummyt + β2 Tobin’s Qt-1 + β3 Ln assetst + β4 industry dummies + u
example of essay similar to this assignment : https://feb.studenttheses.ub.rug.nl/9666/1/Thesis_C_Dreue.pdf
