The Collins College of Business is delighted to acknowledge the remarkable achievements of one of their recent faculty additions, Cayman Seagraves, Ph.D., whose significant contributions have left an indelible mark on the college. Cayman is set to be published in the prestigious Journal of Law & Economics at the University of Chicago, an A* journal, underscoring the caliber of his scholarly work.
Dr. Seagrave’s research paper, titled “Guilty by Political Association: The impact of Political Scandals on Connected Firms,” examines the economic impact of scandals involving U.S. congresspersons from 1992 to 2018 on politically connected firms. After the initial media report of a scandal, firms associated with the scandal-tainted congressperson suffer a relative decrease in market value. This decline is attributed to both reputational damage and a diminished connection effectiveness mechanism, revealing an undisclosed cost of corporate political connections: the negative consequences when a connected politician is embroiled in a scandal.