Core Insights - The U.S. Supreme Court's decisions in Citizens United v. FEC and SpeechNow.org v. FEC have significantly altered the political contributions landscape, leading to the rise of dark money, which allows unlimited contributions without disclosure requirements [1][2]. Group 1: Dark Money Usage - A study covering S&P 500 firms from 2008 to 2022 indicates a marked increase in dark money contributions, with nearly 25% of these firms reporting such contributions totaling $2.1 billion across 23,483 transactions [2][4]. - Dark money complements rather than replaces traditional political activities like PAC contributions and lobbying, with dark money expenditures reaching nearly $300 million annually by 2022 [5]. Group 2: Characteristics of Firms - Firms that disclose dark money contributions tend to be larger, older, carry more debt, and pay lower taxes compared to those that do not disclose [12]. - The likelihood of a firm disclosing dark money increases if industry peers disclose similar contributions, indicating peer effects in voluntary disclosure [8]. Group 3: Benefits of Dark Money - Firms contributing to dark money groups are 25% more likely to secure federal procurement contracts, with average contract amounts more than doubling compared to those not involved in dark money [10]. - Dark money contributors also receive more government subsidies, including grants and tax credits, while PAC contributions show no significant effect on these benefits [10]. Group 4: Political Activity and Resource Allocation - Dark money is positively related to industrywide subsidies, suggesting that contributions can enhance the flow of subsidies across entire sectors [11]. - Lobbying is more strongly correlated with the distribution of federal contracts across industries, indicating that long-term relationships facilitated by lobbyists may be more critical for procurement contracts [11].