12min chapter

Ideas of India cover image

Sukrit Puri on the Entanglement between Business and Politics in India

Ideas of India

CHAPTER

Corporate Transparency and Political Donations in India

This chapter explores the impact of a Supreme Court ruling mandating the disclosure of anonymous political donations through electoral bonds in India, particularly focusing on publicly listed companies. It highlights the resulting market 'information shock' and the significant drop in market capitalization, while examining the motivations behind corporate secrecy in political affiliations. The discussion critiques existing literature and analyzes the complex interplay between corporate interests, political influences, and their repercussions on reputational costs and investor behavior.

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