Direct political control over firms has diminished due to regulation, yet political connections persist. This study explores an alternative channel: electoral cycles influencing corporate appointments.

* Data & Methods

Analyzed survival models of chairpersons' turnovers in 90 Spanish savings banks from 1985-2010.

* Key Findings

Strong evidence for electoral appointment cycles: bank leaders face higher turnover risk shortly after regional elections and government changes.

This suggests politicians exert influence over corporate leadership even within regulated environments, potentially through appointments rather than direct control.