Seeking Alpha

Though academic research suggests that the stocks of companies that make political donations...

Though academic research suggests that the stocks of companies that make political donations perform worse than ones that don't, this year's elections could see corporate political spending skyrocket with a Supreme Court ruling having opened the door for unlimited spending on campaigns. Shareholders at Boeing (BA), IBM, PepsiCo (PEP) and BofA (BAC) seem to get the picture - having put forward motions to curb political spending. But their resolutions failed, so execs may squander more resources on campaigns with no benefit to investors.
Comments (17)
  • anarchist
    , contributor
    Comments (1409) | Send Message
     
    How wonderful, first the Cooperates were given the same rights as individuals by the Supreme Court and now unlimited Corporate spending on campaigns so they can completely control Congress-makes me sick!!!!!!!!!
    27 May 2012, 09:29 AM Reply Like
  • Poor Texan
    , contributor
    Comments (3531) | Send Message
     
    Of course there are no humans involved in the 'Corporates'. There are just big computers and automatons. The laws passed in Washington and the state capitols don't affect the jobs of the workers and owners of the 'Corporates'. Wake up!
    27 May 2012, 11:04 AM Reply Like
  • bdarken
    , contributor
    Comments (448) | Send Message
     
    Isn't it great that you don't have to own any of those big corporates?
    27 May 2012, 11:26 AM Reply Like
  • dixie
    , contributor
    Comments (276) | Send Message
     
    Sounds like a win-win to also lock-up anarchists.
    30 May 2012, 07:54 PM Reply Like
  • wyostocks
    , contributor
    Comments (8229) | Send Message
     
    Does a similiar "study" exist for the millions spent by labor unions?
    I say the unions control more politicians than all the corporations combined.
    27 May 2012, 09:47 AM Reply Like
  • winningtrader
    , contributor
    Comments (2476) | Send Message
     
    Right, what really makes the difference is having lobbyists in Washington. This works.
    27 May 2012, 09:52 AM Reply Like
  • BruceInKY
    , contributor
    Comments (433) | Send Message
     
    And why shouldn't Boeing be politically active, as the future profitability of their North American operations is at stake?
    27 May 2012, 10:24 AM Reply Like
  • dividend_growth
    , contributor
    Comments (2895) | Send Message
     
    Tech companies have the biggest wallet, and they mostly support Dems.
    27 May 2012, 10:39 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4091) | Send Message
     
    Due to a clear conflict of interest we need a ban on ALL campaign financing other than a small amount given to all candidates from the federal budget. End of story. Lobbying has to be outlawed as good as possible too. Whether lobbying is committed by companies, religious interest, labour unions or what do I know shouldn't matter.

     

    If I see that one of the companies I own stock in donates tons of money to whoever, I will sell them. This is not in my interest. I like the share holder actions at aforementioned companies in this context, but I do not own stock in any of those anyhow.
    27 May 2012, 10:44 AM Reply Like
  • Poor Texan
    , contributor
    Comments (3531) | Send Message
     
    "Due to a clear conflict of interest we need a ban on ALL campaign financing other than a small amount given to all candidates from the federal budget."

     

    Great! Then the rich candidates can use their money to outspend the average candidates and, when they win, get back their money through federal grants to their pet projects.
    27 May 2012, 11:09 AM Reply Like
  • anonymous#12
    , contributor
    Comments (552) | Send Message
     
    "If I see that one of the companies I own stock in donates tons of money to whoever, I will sell them"....

     

    You own Apple shares, so start selling.....Apple donates money to Capitol Hill.
    27 May 2012, 11:16 AM Reply Like
  • TruffelPig
    , contributor
    Comments (4091) | Send Message
     
    That obviously has to be made illegal.
    27 May 2012, 01:35 PM Reply Like
  • TruffelPig
    , contributor
    Comments (4091) | Send Message
     
    http://bit.ly/KuLDLE
    27 May 2012, 01:47 PM Reply Like
  • bdarken
    , contributor
    Comments (448) | Send Message
     
    Ahem....
    Warren Buffet?
    27 May 2012, 11:29 AM Reply Like
  • untrusting investor
    , contributor
    Comments (9966) | Send Message
     
    No sure what academic studies are being referred to, but previous reports have noted that the ROI on corporate campaign donations are over 100x "investment". But it may well be that such corporate donations possibly go to benefit mainly corporate executives and insiders. As for example tax laws on stock option compensation preferences, or hedge fund manager tax preferences, or foreign profit tax deferrals.
    27 May 2012, 02:48 PM Reply Like
  • getgene
    , contributor
    Comments (6) | Send Message
     
    As usual, the logical paths get all muddled. First, the Supreme Court does not give anyone rights, or it shouldn't, upon reflection. What it determined is corporations have a right to free speech. If one thinks that is granting a power, then one should meditate upon his or her view of government.

     

    That said, what is it people are upset over? I can only guess there is "feeling" among "liberals," a word distorted over the past thirty years to mean its opposite, that corporations will now be able to give more more money to the oligarchs on the right. The tribal feeling being only my oligarchs should get massive support to influence politics, say like unions. I would suggest the liberals study GE very closely to see how corruption works on their side.

     

    We have, thus, a political distress that one side will gain an advantage. There are two paths: "so what?" and "no one should have any influence!" The latter is great, but you know it will never happend. eg. Lie about GM, kill GM, kill bondholders, then move control to the unions. Brute fascism cannot be stopped by a silly law. Lobbyists are needed because they need to tell our representatives what to vote for. What to do?

     

    Since all side are essentially corrupt and corporations have to contribute to both sides lest they be obliterated after an election, notice Baine contributed to Obama, then another solution is necessary to address the entire morass. Canada has simple take: very short election cycle where access is given to all parties to address issues before the people.

     

    That system is logical and works, more or less. Now, would the US accept a cheap way to run politics? The people would, but the parties' establishment would consider such an idea more "flake" stuff, like reigning in the FED or requiring a candidate for the Presidency by natural-born.. CNN and Hannity would be instructed to attack such crazy ideas. The solution is to forget looking to government for a way to control it.

     

    The solution, as always, is vote out everyone, regardless of party, unless they present a compelling defense of their tenure with respect to defending the Constitution and individual rights. The burden of proof would be upon them. Sure, you could also vote against someone who is just stupid. It is as simple as that, we need NO career politicians. They have already shown experience is not required and only provides an understanding of the techniques of corruption.

     

    It always comes down to our tradition of individual freedom and responsibility versus the old-Europe statism hiding behind socialism.
    27 May 2012, 03:16 PM Reply Like
  • dixie
    , contributor
    Comments (276) | Send Message
     
    Here's hoping most corporations donate $$$$ to oust Obummer. A win for the country together with a win for capital gains.
    30 May 2012, 07:52 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector