Political information flow and management guidance

Dane M. Christensen, Arthur Morris*, Beverly R. Walther, Laura A. Wellman

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Scopus citations


We examine whether politically connected firms play a role in disseminating political information via their management guidance. Using campaign financing activity or the presence of a government affairs office to proxy for firms’ access to political information, we find that politically connected firms are more likely to issue management guidance, and their guidance is more likely to discuss government policies. Further, these relations are attenuated for firms facing high proprietary costs of disclosure. To provide evidence on the source of the political information disclosed through guidance, we examine the timing of when guidance is issued. We find that politically connected firms are more likely to issue guidance and change their government policy–related disclosures prior to the public revelation of government policy decisions. Collectively, these findings suggest that the privileged information firms obtain through their political connections is shared with investors through voluntary disclosures.

Original languageEnglish (US)
Pages (from-to)1466-1499
Number of pages34
JournalReview of Accounting Studies
Issue number3
StatePublished - Sep 2023


  • Corporate disclosure
  • Information flow
  • Management forecasts
  • Political connections

ASJC Scopus subject areas

  • Accounting
  • General Business, Management and Accounting


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