The (Market) Value of State Honors

Stéphane Benveniste (1) , Renaud Coulomb (2) , Marc Sangnier (3, 1)

1 AMSE - Aix-Marseille Sciences Economiques
2 University of Melbourne
3 UNamur - Université de Namur [Namur]

State awards to civilians are a widespread social phenomenon across space and time. This paper quantifies the impact of State awards given to Directors on the stock value of their firms. We link a comprehensive dataset of recipients of the Légion d'honneurthe most prestigious official award in France-over the 1995-2019 period to Board positions in French listed firms. We document large abnormal returns in the stocks of recipients' firms at the date of the award, suggesting that awards signal valuable access to policy-makers. This interpretation is corroborated by the absence of any market reaction for recipients who were already identified before award receipt as being close to the Government.

Mots clés: Awards; State Honors; Symbolic Capital; Political Connections

Domaines: Economies et finances

Stéphane Benveniste, Renaud Coulomb, Marc Sangnier. The (Market) Value of State Honors. 2022. ⟨halshs-03558566⟩