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

Research output: Contribution to journal › Article › peer-review

Standard Standard

Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign. / Brownen-Trinh, Ruby; Orujov, Ayan.
In: Journal of Corporate Finance, Vol. 80, 102417, 06.2023.

Research output: Contribution to journal › Article › peer-review

HarvardHarvard

Brownen-Trinh, R & Orujov, A 2023, 'Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign', Journal of Corporate Finance, vol. 80, 102417. https://doi.org/10.1016/j.jcorpfin.2023.102417

APA

Brownen-Trinh, R., & Orujov, A. (2023). Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign. Journal of Corporate Finance, 80, Article 102417. https://doi.org/10.1016/j.jcorpfin.2023.102417

CBE

Brownen-Trinh R, Orujov A. 2023. Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign. Journal of Corporate Finance. 80:Article 102417. https://doi.org/10.1016/j.jcorpfin.2023.102417

MLA

Brownen-Trinh, Ruby and Ayan Orujov. "Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign". Journal of Corporate Finance. 2023. 80. https://doi.org/10.1016/j.jcorpfin.2023.102417

VancouverVancouver

Brownen-Trinh R, Orujov A. Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign. Journal of Corporate Finance. 2023 Jun;80:102417. Epub 2023 Apr 13. doi: https://doi.org/10.1016/j.jcorpfin.2023.102417

Author

Brownen-Trinh, Ruby ; Orujov, Ayan. / Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign. In: Journal of Corporate Finance. 2023 ; Vol. 80.

RIS

TY - JOUR

T1 - Corporate Socio-political Activism and Retail Investors: Evidence from the Black Lives Matter Campaign

AU - Brownen-Trinh, Ruby

AU - Orujov, Ayan

PY - 2023/6

Y1 - 2023/6

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.

KW - corporate socio-political activism

KW - Black lives matter

KW - Retail Investors

KW - ESG

KW - corporate social responsibility

KW - Robinhood investors

U2 - https://doi.org/10.1016/j.jcorpfin.2023.102417

DO - https://doi.org/10.1016/j.jcorpfin.2023.102417

M3 - Article

VL - 80

JO - Journal of Corporate Finance

JF - Journal of Corporate Finance

SN - 0929-1199

M1 - 102417

ER -