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Firm-specific determinants of corporate lobbying participation and intensity

By: SADRIEH, Farid.
Contributor(s): ANNAVARJULA, Madan.
Material type: materialTypeLabelArticlePublisher: Philadelphia : Routledge, 2005International Journal of Public Administration - IJPA 28, 1-2, p. 179-202 Abstract: Lobbying constitutes a major element in the political strategy of firms seeking favorable regulatory outcomes and is perceived as a source of a firm’s competitive advantage. Recognizing firms’ ability to influence their external environments through reactive and proactive political behavior, this paper analyzes the firm-specific determinants of corporate political activity and intensity. Results from US and Japanese firms indicate that firm size, diversification, and internationalization positively influence the likelihood of a firm being an active lobbyist. While firm profitability influences the "intensity" of lobbying activity, foreign nationality has a negative impact.
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Lobbying constitutes a major element in the political strategy of firms seeking favorable regulatory outcomes and is perceived as a source of a firm’s competitive advantage. Recognizing firms’ ability to influence their external environments through reactive and proactive political behavior, this paper analyzes the firm-specific determinants of corporate political activity and intensity. Results from US and Japanese firms indicate that firm size, diversification, and internationalization positively influence the likelihood of a firm being an active lobbyist. While firm profitability influences the "intensity" of lobbying activity, foreign nationality has a negative impact.

Volume 28

Numbers 1-2

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