Him Too? Analyzing the Effects of Epstein Connections

<p><span>Does proximity to a powerful but severely compromised individual expand a firm's access to elite networks, or contaminate its boardroom with tolerance for misconduct? The Epstein files, over 1.3 million DOJ documents released between September 2025 and January 2026, let us study this question directly. Searching the files for all CEOs and directors of U.S. public firms and classifying contact with a large language model, we identify 841 directors with frequent contact with Jeffrey Epstein. We establish three results. First, S&amp;P 500 firms tied to Epstein in post-release news coverage lost 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, regulatory actions, and litigation. Mechanism tests indicate that gains in a firm's own network centrality do not predict misconduct, whereas exposure to other Epstein-connected boards through shared directors does. Proximity to a depraved individual reaches the boardroom by exposing firms to tainted peers, not by improving their network position.</span></p>