Do Corporate Officers’ Political Connection Affect DoD Contractor Profitability? A 10-year, data-driven analysis of US public firms.

Abstract

We use a disciplined, data-driven approach to analyzing the effect that political connection has on possible excessive profits of DoD contractors. Such connections could serve to influence government acquisition and lead to non-ideal government cost outcomes. Our research follows the methodology of Wang (2014) in conducting biographical analysis of corporate governors and comparative analysis of ROA against non-defense firms, controlled for size and industry SIC. This research seeks to identify whether the political connections of Top 100 Defense Contractor leadership over 10-year period affect government cost outcomes.