Be yourself, it matters what they say : investor reaction to corporations condemning the U.S. Capitol Riot
Autor(a) principal: | |
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Data de Publicação: | 2022 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/39029 |
Resumo: | Purpose: Stakeholders exert increasing pressure on firms to speak up on controversial sociopolitical issues, thus engaging in Corporate Sociopolitical Activism (CSA). Previous research on the financial consequences of firms taking positions on polarizing issues is scarce and inconsistent. Therefore, this study analyzes the investor reaction to firms engaging in CSA by condemning the U.S. Capitol Riot. A particular focus lies on the moderating effect of the engagement’s perceived authenticity. Methodology: An event study was run on a sample of 158 firm-statements given by components of the S&P 500 in the aftermath of the U.S. Capitol Riot in early 2021. The cumulative abnormal returns (CARs) obtained in the event study served as the dependent variable for several multiple regression models used to analyze the moderating effect of the statements’ perceived authenticity. The perceived authenticity is reflected in the firm’s organizational ideology, the message’s content, and the firm’s previous engagements in CSA. Findings: We find marginal evidence to confirm the positive effect of condemning the U.S. Capitol Riot on firm value. The results further suggest that a liberal organizational ideology and making a substantive statement positively affect the investor reaction. Building on stakeholder theory, this phenomenon can be explained by considering CSA as a means for firms to signal the alignment of their values with those of their stakeholders, leading to competitive advantage. Originality: This paper advances the literature of nonmarket strategy and particularly contributes to the research on CSA by analyzing the investor reaction to firms condemning the U.S. Capitol Riot. |
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Be yourself, it matters what they say : investor reaction to corporations condemning the U.S. Capitol RiotNonmarket strategyCorporate sociopolitical activismU.S. Capitol RiotEvent studyInvestor reactionStock market reactionCumulative abnormal returnStakeholder theoryPerceived authenticityEstratégia não-mercadoActivismo sociopolítico corporativoEstudo de eventosReacção do investidorReacção do mercadoRetornos anormais acumuladosTeoria de stakeholdersAutenticidade percebidaDomínio/Área Científica::Ciências Sociais::Economia e GestãoPurpose: Stakeholders exert increasing pressure on firms to speak up on controversial sociopolitical issues, thus engaging in Corporate Sociopolitical Activism (CSA). Previous research on the financial consequences of firms taking positions on polarizing issues is scarce and inconsistent. Therefore, this study analyzes the investor reaction to firms engaging in CSA by condemning the U.S. Capitol Riot. A particular focus lies on the moderating effect of the engagement’s perceived authenticity. Methodology: An event study was run on a sample of 158 firm-statements given by components of the S&P 500 in the aftermath of the U.S. Capitol Riot in early 2021. The cumulative abnormal returns (CARs) obtained in the event study served as the dependent variable for several multiple regression models used to analyze the moderating effect of the statements’ perceived authenticity. The perceived authenticity is reflected in the firm’s organizational ideology, the message’s content, and the firm’s previous engagements in CSA. Findings: We find marginal evidence to confirm the positive effect of condemning the U.S. Capitol Riot on firm value. The results further suggest that a liberal organizational ideology and making a substantive statement positively affect the investor reaction. Building on stakeholder theory, this phenomenon can be explained by considering CSA as a means for firms to signal the alignment of their values with those of their stakeholders, leading to competitive advantage. Originality: This paper advances the literature of nonmarket strategy and particularly contributes to the research on CSA by analyzing the investor reaction to firms condemning the U.S. Capitol Riot.Objectivo: As partes interessadas exercem uma pressão crescente sobre as empresas para se pronunciarem sobre questões sociopolíticas controversas, envolvendo-se assim no activismo sociopolítico empresarial (CSA). A investigação anterior sobre as consequências financeiras das empresas que tomam posições sobre questões de polarização é escassa e inconsistente. Por conseguinte, este estudo analisa a reacção dos investidores às empresas envolvidas na CSA, condenando o Motim do Capitólio dos EUA. Um foco particular reside no efeito moderador da autenticidade percebida do empenho. Metodologia: Foi realizado um estudo de evento com base numa amostra de 158 declarações dadas por componentes do S&P 500 no rescaldo do Motim do Capitólio dos E.U.A. no início de 2021. Os retornos anormais acumulados (CARs) serviram como variável dependente para vários modelos de regressão múltipla utilizados para analisar o efeito moderador da autenticidade percebida das declarações. A autenticidade percebida reflecte-se na ideologia organizacional da empresa, no conteúdo da mensagem, e nos compromissos anteriores da empresa com a CSA. Conclusões: Encontrámos provas marginais que confirmam o efeito positivo da condenação do Motim do Capitólio dos EUA no valor da empresa. Os resultados sugerem ainda que uma ideologia organizacional liberal e uma declaração substantiva afectam positivamente a reacção do investidor. Com base na teoria dos detentores de participações, este fenómeno pode ser explicado considerando a CSA como um meio para as empresas assinalarem o alinhamento dos seus valores com os dos seus intervenientes, conduzindo a uma vantagem competitiva. Originalidade: Este trabalho contribui para a compreensão da CSA.El Nayal, OmarVeritati - Repositório Institucional da Universidade Católica PortuguesaHeinhold, Felix Harald2022-09-28T13:02:20Z2022-05-042022-042022-05-04T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/39029TID:203038525enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:44:31Zoai:repositorio.ucp.pt:10400.14/39029Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:31:53.222085Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Be yourself, it matters what they say : investor reaction to corporations condemning the U.S. Capitol Riot |
title |
Be yourself, it matters what they say : investor reaction to corporations condemning the U.S. Capitol Riot |
spellingShingle |
Be yourself, it matters what they say : investor reaction to corporations condemning the U.S. Capitol Riot Heinhold, Felix Harald Nonmarket strategy Corporate sociopolitical activism U.S. Capitol Riot Event study Investor reaction Stock market reaction Cumulative abnormal return Stakeholder theory Perceived authenticity Estratégia não-mercado Activismo sociopolítico corporativo Estudo de eventos Reacção do investidor Reacção do mercado Retornos anormais acumulados Teoria de stakeholders Autenticidade percebida Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Be yourself, it matters what they say : investor reaction to corporations condemning the U.S. Capitol Riot |
title_full |
Be yourself, it matters what they say : investor reaction to corporations condemning the U.S. Capitol Riot |
title_fullStr |
Be yourself, it matters what they say : investor reaction to corporations condemning the U.S. Capitol Riot |
title_full_unstemmed |
Be yourself, it matters what they say : investor reaction to corporations condemning the U.S. Capitol Riot |
title_sort |
Be yourself, it matters what they say : investor reaction to corporations condemning the U.S. Capitol Riot |
author |
Heinhold, Felix Harald |
author_facet |
Heinhold, Felix Harald |
author_role |
author |
dc.contributor.none.fl_str_mv |
El Nayal, Omar Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Heinhold, Felix Harald |
dc.subject.por.fl_str_mv |
Nonmarket strategy Corporate sociopolitical activism U.S. Capitol Riot Event study Investor reaction Stock market reaction Cumulative abnormal return Stakeholder theory Perceived authenticity Estratégia não-mercado Activismo sociopolítico corporativo Estudo de eventos Reacção do investidor Reacção do mercado Retornos anormais acumulados Teoria de stakeholders Autenticidade percebida Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
Nonmarket strategy Corporate sociopolitical activism U.S. Capitol Riot Event study Investor reaction Stock market reaction Cumulative abnormal return Stakeholder theory Perceived authenticity Estratégia não-mercado Activismo sociopolítico corporativo Estudo de eventos Reacção do investidor Reacção do mercado Retornos anormais acumulados Teoria de stakeholders Autenticidade percebida Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
Purpose: Stakeholders exert increasing pressure on firms to speak up on controversial sociopolitical issues, thus engaging in Corporate Sociopolitical Activism (CSA). Previous research on the financial consequences of firms taking positions on polarizing issues is scarce and inconsistent. Therefore, this study analyzes the investor reaction to firms engaging in CSA by condemning the U.S. Capitol Riot. A particular focus lies on the moderating effect of the engagement’s perceived authenticity. Methodology: An event study was run on a sample of 158 firm-statements given by components of the S&P 500 in the aftermath of the U.S. Capitol Riot in early 2021. The cumulative abnormal returns (CARs) obtained in the event study served as the dependent variable for several multiple regression models used to analyze the moderating effect of the statements’ perceived authenticity. The perceived authenticity is reflected in the firm’s organizational ideology, the message’s content, and the firm’s previous engagements in CSA. Findings: We find marginal evidence to confirm the positive effect of condemning the U.S. Capitol Riot on firm value. The results further suggest that a liberal organizational ideology and making a substantive statement positively affect the investor reaction. Building on stakeholder theory, this phenomenon can be explained by considering CSA as a means for firms to signal the alignment of their values with those of their stakeholders, leading to competitive advantage. Originality: This paper advances the literature of nonmarket strategy and particularly contributes to the research on CSA by analyzing the investor reaction to firms condemning the U.S. Capitol Riot. |
publishDate |
2022 |
dc.date.none.fl_str_mv |
2022-09-28T13:02:20Z 2022-05-04 2022-04 2022-05-04T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/39029 TID:203038525 |
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http://hdl.handle.net/10400.14/39029 |
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TID:203038525 |
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eng |
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eng |
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openAccess |
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