How big was the Nazi premium?

Every now and then I like to post about history:

Firms connected with the Nazi party outperformed unaffiliated firms
massively. Their share prices rose by 7.2% between January and March
1933 (43% annualised), compared to 0.2% (1.2% annualised) for
unaffiliated firms. The politically induced change was equivalent to
5.8% of total market capitalisation. This is a high number by
international standards. Johnson and Mitton (2003) estimate that
revaluation of political connections in Malaysia during the East Asian
crisis wiped 5.8% of share values. While comparable in magnitude, it
took 12 months for this change to occur.

Here is more, interesting throughout.


Comments for this post are closed