Investor reactions to political board appointments
: an analysis of director specific attributes

  • Jan Asmus Witte (Student)

Student thesis: Master's Thesis


In recent years, companies have increased their CPA, but existing scholars are still indecisive whether it adds value to a firm and their shareholders, or not. This study investigates, using an event-study approach, whether political board appointments are perceived positively by investors. It further uses the underlying theory of human and social capital and tests, using multiple regressions, if such characteristics of former politician have an effect of a positive or negative investor reaction, focusing on political tenure, business experience and party majority. The study tests its predictions using a sample of 51 DAX companies over a period from 2004 to 2020. The results indicate that, on average, investors do perceive political board appointments positively by a CAR of 1.37 percent. However, this study finds no significant evidence that neither political tenure, business experience nor party majority influence such reactions on a significant level.
Date of Award20 Oct 2022
Original languageEnglish
Awarding Institution
  • Universidade Católica Portuguesa
SupervisorOmar El Nayal (Supervisor)


  • Corporate political activity
  • Resource dependency theory
  • Human and social capital
  • Political board appointments
  • DAX
  • Cumulative abnormal return
  • Event study
  • Corporate boards


  • Mestrado em Gestão e Administração de Empresas

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