Spanish companies which employ former politicians have seen their business returns fall, but politicians can still give companies unfair lobbying advantages.

Many politicians choose to pursue a role in business following the end of their political careers. Pau Castells and Francesc Trillas assess whether the presence of former politicians in large businesses should be a cause for concern. They write that while in theory politicians might give companies unfair lobbying advantages, in reality this does not always lead to increased success. Using evidence from Spain, they show that Spanish companies have actually been worse off on average in the immediate aftermath of employing former politicians. Nevertheless, the presence of politicians may still give businesses unfair advantages in certain situations, such as in the case of government bailouts.