Mixing Business With Politics: A Meta-Analysis of the Antecedents and Outcomes of Corporate Political Activity

Abstract

Corporate political activity (CPA) has increased rapidly in the United States; however, research findings are spread across several social science fields. The authors use meta-analysis to aggregate findings involving two sets of research questions: (1) what factors and to what extent do these factors influence firms to engage in CPA, and (2) does CPA, in turn, affect firm performance and, if so, to what extent? Two important contributions are made. First, the evidence suggests that, although many factors shape CPA, very few affect CPA to a large extent. Second, the results suggest that CPA is positively related to firm performance and is an important determinant of firm performance. The authors build on this evidence to suggest several future research directions.