2024-03-29T15:57:50Zhttp://buleria.unileon.es/oai/requestoai:buleria.unileon.es:10612/164732023-10-23T10:30:27Zcom_10612_17col_10612_18
Pintado Blanco, Teresa
López Aza, Carlota
Sánchez, Joaquín
Gutiérrez Rodríguez, Pablo
2023-05-18T06:31:12Z
2023-05-18T06:31:12Z
Pintado Blanco, T., López-Aza, C., Sánchez, J., y Gutiérrez‐Rodríguez, P. (2023). The Side Effect of Political Standing: Corporate Activism and Its Impact on Stock Returns. Politics and Governance, 11(2). https://doi.org/10.17645/pag.v11i2.6306
http://hdl.handle.net/10612/16473
10.17645/pag.v11i2.6306
2183-2463
[EN]: Taking sides on controversial political issues such as gun control, abortion, immigration, or diversity is increasingly common
among large companies. What remains unclear, however, is whether this type of strategy—known as “corporate
activism”—has positive or negative effects on these companies. The use of the concept of corporate activism on different
variables affecting the companies is relatively recent. This article analyses the effect of corporate activism on the stock market
performance of US companies through the analysis of the sample collected. Although there are some recent articles
published on this topic, none of them measures the risk associated with the use of this type of strategy. For the development
of the research, the well‐known Fama–French modelling framework is applied to estimate the differences between
companies that participate in corporate activism initiatives versus those that remain outside this strategy. The findings
complement previous research showing that companies that use corporate activism have lower market risk than companies
that do not engage in this type of strategy. These results can be useful in identifying the advantages and disadvantages
of corporate activism initiatives and, in addition, they can also help companies to evaluate the use of corporate activism
as a strategic tool and as a driver of social change.
http://creativecommons.org/licenses/by/4.0/
info:eu-repo/semantics/openAccess
Atribución 4.0 Internacional
Economía
Empresas
Política
The Side Effect of Political Standing: Corporate Activism and Its Impact on Stock Returns
info:eu-repo/semantics/article