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Shining a Light on Firms’ Political Connections: The Role of Dark Money

Matthew Denes & Madeline Marco Scanlon

Review of Corporate Finance Studies2025https://doi.org/10.1093/rcfs/cfaf016article
AJG 3ABDC A*
Weight
0.37

Abstract

We study the emergence of a new channel for firms’ political activity using dark money through undisclosed and unlimited contributions. After the U.S. federal court decisions in 2010, S&P 500 firms substantially increased their use of dark money. We find that dark money contributions complement political engagement through campaign contributions and lobbying. Firms disclose dark money contributions when they face heightened nondisclosure costs. Firms contributing to dark money groups benefit by receiving more procurement contracts and increased government subsidies. Our findings highlight that political connections by firms are evolving and expanding through new and largely unexplored channels. (JEL D72, D73, G38, H57)

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https://doi.org/https://doi.org/10.1093/rcfs/cfaf016

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@article{matthew2025,
  title        = {{Shining a Light on Firms’ Political Connections: The Role of Dark Money}},
  author       = {Matthew Denes & Madeline Marco Scanlon},
  journal      = {Review of Corporate Finance Studies},
  year         = {2025},
  doi          = {https://doi.org/https://doi.org/10.1093/rcfs/cfaf016},
}

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Shining a Light on Firms’ Political Connections: The Role of Dark Money

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Evidence weight

0.37

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.16 × 0.4 = 0.06
M · momentum0.53 × 0.15 = 0.08
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

† Text relevance is estimated at 0.50 on the detail page — for your query’s actual relevance score, open this paper from a search result.