Political connections and seasoned equity offerings

This study examines the impact of political connections on seasoned equity offerings. Using offerings (SEOs) from 2001 to 2018 in USA, we find that politically connected issuers enjoy a lower cost issuance than their non-connected counterparts. Our empirical evidence is robust controls for firm characteristics, corporate governance features, propensity score matching models, and an instrumental variable approach. Moreover, conducting primary those operating high corrupt states benefitted more connections. Overall, our consistent with view reduce raising external capital.