In the United States legislative landscape, partisan identities of lobbying firms matter—especially in the House. This research investigates whether these ties translate to financial gains.
BACKGROUND & OBJECTIVE:
Drawing on data from 2008 to 2016 under the Lobbying Disclosure Act, we analyze panel regression and difference-in-differences models to test hypotheses about partisan alignment's impact on lobbying revenue.
KEY FINDING:
Our results indicate a clear advantage for firms with partisan ties matching the House majority party—boosting financial returns significantly.
NO SENATE BENEFIT?
Interestingly, aligning with the Senate majority party does not yield similar financial benefits, as shown by our analysis controlling for organizational characteristics and client diversity.
POLITICAL SHIFT IMPACT:
A striking result emerges from a partisan shift: Democratic-aligned firms faced substantial revenue declines after Republicans regained control of the House in 2011—no such decline was observed among Republican-aligned firms.
This study suggests that legislative subsidy patterns are influenced by partisan institutional dynamics, particularly at the lower chamber level.
