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Corporate support for black lives matter: Determinants and effects on retail investors

Research output: Contribution to conference › Paper › peer-review

Standard Standard

Corporate support for black lives matter: Determinants and effects on retail investors. / Brownen-Trinh, Ruby; Orujov, Ayan.
2021. Paper presented at European Accounting Association - Virtual Congress.

Research output: Contribution to conference › Paper › peer-review

HarvardHarvard

Brownen-Trinh, R & Orujov, A 2021, 'Corporate support for black lives matter: Determinants and effects on retail investors', Paper presented at European Accounting Association - Virtual Congress, 24/05/21 - 28/05/21.

APA

Brownen-Trinh, R., & Orujov, A. (2021). Corporate support for black lives matter: Determinants and effects on retail investors. Paper presented at European Accounting Association - Virtual Congress.

CBE

Brownen-Trinh R, Orujov A. 2021. Corporate support for black lives matter: Determinants and effects on retail investors. Paper presented at European Accounting Association - Virtual Congress.

MLA

Brownen-Trinh, Ruby and Ayan Orujov Corporate support for black lives matter: Determinants and effects on retail investors. European Accounting Association - Virtual Congress, 24 May 2021, Paper, 2021.

VancouverVancouver

Brownen-Trinh R, Orujov A. Corporate support for black lives matter: Determinants and effects on retail investors. 2021. Paper presented at European Accounting Association - Virtual Congress.

Author

Brownen-Trinh, Ruby ; Orujov, Ayan. / Corporate support for black lives matter: Determinants and effects on retail investors. Paper presented at European Accounting Association - Virtual Congress.

RIS

TY - CONF

T1 - Corporate support for black lives matter: Determinants and effects on retail investors

AU - Brownen-Trinh, Ruby

AU - Orujov, Ayan

PY - 2021/5

Y1 - 2021/5

N2 - This study investigates corporate decisions to engage in corporate socio-political activism (CSA) and retail investor response to such engagements, using manually collected evidence of companies’ support for the Black Lives Matter (BLM) campaign. Our results show that racial and gender diversity of the board of directors is positively related to the likelihood of CSA engagement. We find that speaking up in support of the BLM campaign attracts retail investor attention. However, it influences their investment decision 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 board, larger companies, and companies headquartered in Democrat states. There is no corresponding increase in firm value. Our results suggest that retail investor preference for companies that engage in CSA is likely guided by moral sentiment.

AB - This study investigates corporate decisions to engage in corporate socio-political activism (CSA) and retail investor response to such engagements, using manually collected evidence of companies’ support for the Black Lives Matter (BLM) campaign. Our results show that racial and gender diversity of the board of directors is positively related to the likelihood of CSA engagement. We find that speaking up in support of the BLM campaign attracts retail investor attention. However, it influences their investment decision 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 board, larger companies, and companies headquartered in Democrat states. There is no corresponding increase in firm value. Our results suggest that retail investor preference for companies that engage in CSA is likely guided by moral sentiment.

M3 - Paper

T2 - European Accounting Association - Virtual Congress

Y2 - 24 May 2021 through 28 May 2021

ER -