CEO-Employee Political Alignment and Financial Reporting Outcomes Restricted; Files Only

Sohn, Sang Woo (Spring 2023)

Permanent URL:


I examine the association between CEO-employee political alignment and financial reporting outcomes. Using individual political campaign contribution data to measure CEO and employee partisanship, I find that firms with less political alignment between the CEO and employees issue less frequent management forecasts and exhibit more internal control weaknesses and restatements. The negative relation between the political distance and management forecast frequency exists for both Democratic and Republican CEOs and is driven by periods with high political polarization of economic views and by CEOs with similar partisanship to the area where the firm is headquartered. This relation is attenuated when the employees have fewer outside opportunities and when the firm has fewer employees. My evidence suggests that the political distance between the CEO and employees is associated with both voluntary and mandatory disclosure quality.

Table of Contents


1. Introduction 1

2. Literature Review and Hypothesis Development 7

3. Research Design 11

4. Results 18

5. Additional Analyses 21

6. Conclusion 27

7. References 29


Appendix 34

Tables and Figures

Table 1 37

Table 2 39

Table 3 41

Table 4 43

Table 5 45

Table 6 47

Table 7 49

About this Dissertation

Rights statement
  • Permission granted by the author to include this thesis or dissertation in this repository. All rights reserved by the author. Please contact the author for information regarding the reproduction and use of this thesis or dissertation.
Subfield / Discipline
  • English
Research Field
Committee Chair / Thesis Advisor
Committee Members
Last modified Preview image embargoed

Primary PDF

Supplemental Files