Marina Gertsberg - University of Melbourne
"Him Too? Analyzing the Effects of Epstein Connections"
Abstract
The Epstein files, released by the DOJ between September 2025 and January 2026, provide an unprecedented record of a stigmatized actor's ties to corporate leadership. We examine whether proximity to such an actor expands firms' access to elite networks, transmits tolerance for misconduct, or both. Searching over 1.3 million DOJ documents for 92,698 CEOs and directors of U.S. public firms and using LLM-based classification, we identify 825 directors with frequent documented contact with Epstein.We establish three results. First, S&P 500 firms linked to Epstein in post-release news coverage experienced cumulative abnormal returns of -3.7% over three trading days. Second, Epstein-mediated ties substantially densify the corporate board network. Third, firms with more Epstein-connected directors experience significantly more governance, employee, and total misconduct incidents, as well as more regulatory actions and litigation.
Mechanism tests indicate that gains in a firm's own network centrality do not predict theseoutcomes, whereas indirect exposure through neighboring Epstein-connected boards consistently does, identifying norm contagion rather than expanded network position as the channel through which proximity to a bad actor reaches the boardroom.
Additional information:
- Speaker: Marina Gertsberg
- Time: Tuesday, 17.06.2026, 14:45 - 16:00
- Location: Faculty Lounge, Room 0.036
- Further links:
- Organizer: Finance Group
- Contact:
- Almut Lunkenheimer
- +49 228 73-9228
- ifs@uni-bonn.de