There may be a link between political corruption and dividend payouts. Companies headquartered in U.S. states with higher levels of political corruption pay out more to investors through dividends and stock buybacks, according to new research.

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The biggest thing I’ve noticed is that a lot of the general public is unaware to this so it carries on as the normal. When the people aren’t aware these companies can just hide behind a series of legal documents and financial buzzwords to justify their actions.


I have some serious doubts about this research. States with stock exchanges tend to have the most dividends and stock buybacks, and also the most politicians. Take New York for example. This is just a population question. Basically, the East Coast and California have more politicians and more companies with more money. The correlation is that company headquarters and politicians both live in highly populated, wealthy places. Empty, poor places don’t have much of either. The lurking variable is the problem.


Like half of companies pay dividends. And stock buybacks are virtually the exact opposite of paying out dividends in a lot of ways… I’m guessing this is a major case of correlation not meaning causation, because it really doesn’t make much sense otherwise.


When you make capital King, capital will rove the world looking for the best return on investments. With 75+ years of refinement and globalization, corporations are so strong that they can unduly influence government to increase that ROI.


Hi if we have data on states with corruption. Could we just fix that first and not worry so much about dividends and buybacks?