RT info:eu-repo/semantics/article T1 The Side Effect of Political Standing: Corporate Activism and Its Impact on Stock Returns A1 Pintado Blanco, Teresa A1 López Aza, Carlota A1 Sánchez, Joaquín A1 Gutiérrez Rodríguez, Pablo A2 Comercializacion e Investigacion de Mercados K1 Economía K1 Empresas K1 Política K1 Corporate activism K1 Corporate social advocacy K1 Corporate social responsibility K1 Firm value AB [EN]: Taking sides on controversial political issues such as gun control, abortion, immigration, or diversity is increasingly commonamong large companies. What remains unclear, however, is whether this type of strategy—known as “corporateactivism”—has positive or negative effects on these companies. The use of the concept of corporate activism on differentvariables affecting the companies is relatively recent. This article analyses the effect of corporate activism on the stock marketperformance of US companies through the analysis of the sample collected. Although there are some recent articlespublished on this topic, none of them measures the risk associated with the use of this type of strategy. For the developmentof the research, the well‐known Fama–French modelling framework is applied to estimate the differences betweencompanies that participate in corporate activism initiatives versus those that remain outside this strategy. The findingscomplement previous research showing that companies that use corporate activism have lower market risk than companiesthat do not engage in this type of strategy. These results can be useful in identifying the advantages and disadvantagesof corporate activism initiatives and, in addition, they can also help companies to evaluate the use of corporate activismas a strategic tool and as a driver of social change. PB Cogitatio Press LK http://hdl.handle.net/10612/16473 UL http://hdl.handle.net/10612/16473 NO 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 DS BULERIA. Repositorio Institucional de la Universidad de León RD 29-mar-2024