Work

The Partisanship of Financial Regulators

Year: 2023

Type: article

Abstract: We analyze the partisanship of Commissioners at the SEC and Governors at the Federal Reserve Board. Using recent advances in machine learning, we identify partisan phrases in Congress, such as “red tape” and “climate change,” and observe their usage among regulators. Although the Fed has remained relatively nonpartisan throughout our sample period (1930–2019), we find that partisanship among SEC Commissioners rose to an all-time high during the 2010-2019 period, driven by more-partisan Commissioners replacing less-partisan ones. Partisanship at the SEC appears in both the language of new SEC rules and the voting behavior of SEC Commissioners. Authors have furnished an Internet Appendix, which is available on the Oxford University Press Web site next to the link to the final published paper online.

Source: Review of Financial Studies

DOI: 10.1093/rfs/hhad029

Authors: Joseph Engelberg, Matthew Henriksson, Asaf Manela, Jared Williams

Institutions: University of California San Diego, University of Tennessee at Knoxville, Reichman University, Washington University in St. Louis, University of South Florida

Language: English

Topic: Political Influence and Corporate Strategies

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: green

OpenAlex ID: W4366606025

FWCI: 8.616

Cites: 38

Cited by: 43

Related to: 10