National Susceptibility to Lobbyism: A financial economics perspective

In this thesis, I have studied the susceptibility to lobbyism of 33 countries and its impact to stock returns via the tools of financial economics. The results are tentative because of data unavailability. An overall susceptibility measure that encompasses national institutions has been constructed that affect positively stock returns and negatively the small company premium. Furthermore we find that different levels of susceptibility might lead to lobby successes in different areas of regulation.