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

Research output: Working paper

Standard Standard

Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors. / Brownen-Trinh, Ruby; Orujov, Ayan.
Social Science Research Network (SSRN), 2020.

Research output: Working paper

HarvardHarvard

Brownen-Trinh, R & Orujov, A 2020 'Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors' Social Science Research Network (SSRN). https://doi.org/10.2139/ssrn.3742730

APA

Brownen-Trinh, R., & Orujov, A. (2020). Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors. Social Science Research Network (SSRN). https://doi.org/10.2139/ssrn.3742730

CBE

Brownen-Trinh R, Orujov A. 2020. Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors. Social Science Research Network (SSRN). https://doi.org/10.2139/ssrn.3742730

MLA

Brownen-Trinh, Ruby and Ayan Orujov Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors. Social Science Research Network (SSRN). 2020., https://doi.org/10.2139/ssrn.3742730

VancouverVancouver

Brownen-Trinh R, Orujov A. Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors. Social Science Research Network (SSRN). 2020 Dec 15. doi: 10.2139/ssrn.3742730

Author

Brownen-Trinh, Ruby ; Orujov, Ayan. / Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors. Social Science Research Network (SSRN), 2020.

RIS

TY - UNPB

T1 - Corporate Support for Black Lives Matter: Determinants and Effects on Retail Investors

AU - Brownen-Trinh, Ruby

AU - Orujov, Ayan

PY - 2020/12/15

Y1 - 2020/12/15

N2 - This study examines factors that influence corporate social activism (CSA) and the effects of such engagement on retail investor preferences using manually collected evidence of companies’ support for the Black Lives Matter campaign (BLM). We find that board diversity and the pressure of meeting social expectations are closely related to companies’ CSA initiatives. Furthermore, using the data on retail investor holdings from the Robinhood trading platform, we report that the number of retail investors holdings stocks in companies that spoke up in support of the BLM campaign increases by about 2 percent compared to that of nonspeaking up companies. The latter effect is stronger for smaller companies and companies with low ESG scores. We also find some evidence that speaking up is associated with an increase in firm value.

AB - This study examines factors that influence corporate social activism (CSA) and the effects of such engagement on retail investor preferences using manually collected evidence of companies’ support for the Black Lives Matter campaign (BLM). We find that board diversity and the pressure of meeting social expectations are closely related to companies’ CSA initiatives. Furthermore, using the data on retail investor holdings from the Robinhood trading platform, we report that the number of retail investors holdings stocks in companies that spoke up in support of the BLM campaign increases by about 2 percent compared to that of nonspeaking up companies. The latter effect is stronger for smaller companies and companies with low ESG scores. We also find some evidence that speaking up is associated with an increase in firm value.

KW - Corporate Social Activism

KW - Black Lives Matter

KW - Retail Investors

KW - ESG

KW - Corporate social responsibility

KW - Robinshood Investors

U2 - 10.2139/ssrn.3742730

DO - 10.2139/ssrn.3742730

M3 - Working paper

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

PB - Social Science Research Network (SSRN)

ER -