Betting on Hitler—The Value of Political Connections in Nazi Germany

摘要: This paper examines the value of connections between German industry and Nazi movement in early 1933. Drawing on previously unused contemporary sources about management supervisory board composition stock returns, we find that one out seven firms, a large proportion biggest companies, had substantive links with National Socialist Workers’ Party. Firms supporting experienced unusually high outperforming unconnected ones by 5% to 8% January March These results are not driven sectoral robust alternative estimators definitions affiliation.