Incorporated in Westminster: Channels and Returns to Political Connection in the United Kingdom

In 2002, an amendment to UK parliamentary regulations removed restrictions on the participation of Members Parliament (MPs) in proceedings related their corporate interests. Using this amendment, we demonstrate higher equity returns for FTSE 350 firms connected MP due increase expected value political access. Following MPs with connections are more likely be members select and joint committees where legislative bills drafted. They also attend committee meetings relative without connections. Firms react increased direct access by rebalancing activities. We that shift board appointments towards sitting MPs, away from other politicians, reduce donations. The benefits greater family ownership lower accounting transparency.