Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign

Ruby Brownen-Trinh; Ayan Orujov

doi:10.1016/j.jcorpfin.2023.102417

Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign

Ruby Brownen-Trinh
, Ayan Orujov

Ysgol Busnes Albert Gubay

University of Bristol

Allbwn ymchwil: Cyfraniad at gyfnodolyn › Erthygl › adolygiad gan gymheiriaid

198 Wedi eu Llwytho i Lawr (Pure)

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This study investigates retail investor responses to corporate engagement in corporate socio-political activism (CSA). Using manually collected evidence of companies’ support for the Black Lives Matter (BLM) campaign, we find that speaking up in support of BLM attracts retail investor attention. However, it influences their investment decisions only if speaking up is backed up by a monetary donation to BLM-related causes on the same day. This effect is observed for companies that have black directors on their board and companies headquartered in Democrat-leaning states. There is no corresponding increase in firm value. Our results suggest that retail investor preferences for companies that engage in CSA are likely guided by moral sentiment.

Iaith wreiddiol	Saesneg
Rhif yr erthygl	102417
Cyfnodolyn	Journal of Corporate Finance
Cyfrol	80
Dyddiad ar-lein cynnar	13 Ebr 2023
Dynodwyr Gwrthrych Digidol (DOIs)	https://doi.org/10.1016/j.jcorpfin.2023.102417
Statws	Cyhoeddwyd - Meh 2023

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10.1016/j.jcorpfin.2023.102417Trwydded: CC BY-NC-ND

Final published versionFersiwn derfynol wedi’i chyhoeddi, 2.48 MBTrwydded: CC BY-NC-ND

1 Papur Gwaith

Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors
Brownen-Trinh, R. & Orujov, A., 15 Rhag 2020, Social Science Research Network (SSRN).
Allbwn ymchwil: Papur gweithio › Papur Gwaith

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title = "Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign",

abstract = "This study investigates retail investor responses to corporate engagement in corporate socio-political activism (CSA). Using manually collected evidence of companies{\textquoteright} support for the Black Lives Matter (BLM) campaign, we find that speaking up in support of BLM attracts retail investor attention. However, it influences their investment decisions only if speaking up is backed up by a monetary donation to BLM-related causes on the same day. This effect is observed for companies that have black directors on their board and companies headquartered in Democrat-leaning states. There is no corresponding increase in firm value. Our results suggest that retail investor preferences for companies that engage in CSA are likely guided by moral sentiment.",

keywords = "corporate socio-political activism, Black lives matter, Retail Investors, ESG, corporate social responsibility, Robinhood investors",

author = "Ruby Brownen-Trinh and Ayan Orujov",

year = "2023",

month = jun,

doi = "10.1016/j.jcorpfin.2023.102417",

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AU - Brownen-Trinh, Ruby

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N2 - This study investigates retail investor responses to corporate engagement in corporate socio-political activism (CSA). Using manually collected evidence of companies’ support for the Black Lives Matter (BLM) campaign, we find that speaking up in support of BLM attracts retail investor attention. However, it influences their investment decisions only if speaking up is backed up by a monetary donation to BLM-related causes on the same day. This effect is observed for companies that have black directors on their board and companies headquartered in Democrat-leaning states. There is no corresponding increase in firm value. Our results suggest that retail investor preferences for companies that engage in CSA are likely guided by moral sentiment.

AB - This study investigates retail investor responses to corporate engagement in corporate socio-political activism (CSA). Using manually collected evidence of companies’ support for the Black Lives Matter (BLM) campaign, we find that speaking up in support of BLM attracts retail investor attention. However, it influences their investment decisions only if speaking up is backed up by a monetary donation to BLM-related causes on the same day. This effect is observed for companies that have black directors on their board and companies headquartered in Democrat-leaning states. There is no corresponding increase in firm value. Our results suggest that retail investor preferences for companies that engage in CSA are likely guided by moral sentiment.

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KW - Black lives matter

KW - Retail Investors

KW - ESG

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Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign

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Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors

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