Due to the funnelling of these dollars into these super PACs, trying to find where this money is being directed is the difficult part. For example, the main Obama super PAC, Priorities USA Action was given $1 million from Jeffrey Katzenberg, CEO of Dreamworks. On the flip side, Las Vegas Sands Corp poured money into supporting the Republican Party and Mitt Romney's run for president.
For an investor, is this good or bad?According to a Rice University/Long Island University study, companies that spend heavily on campaigns, lobbying and other political contributions aren’t necessarily helping their own bottom line. This team looked at stock value of 943 companies in the S&P 1500 over 11 years and tracked approximately $5 billion in political spending from 1998 to 2008. Their findings showed that on average, a company that spent more on political interests, performed worse financially. Below is the 1 year return of the top 5 political-contributing companies along with their CEO compensation. List Average 1-Year Return: 16%. Written by Kapitall's ESG (Environmental, Social, Governance) Expert, Dale Wannen