Into the Dark: Shifts in Corporate Political Activity after Social Movement Challenges

McDonnell, Mary-Hunter; Werner, Timothy

doi:10.2139/ssrn.2882949

Cited by 3 publications

(2 citation statements)

References 69 publications

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“…New research shows that firms that have faced a social movement boycott shift their political action away from campaign contributions and toward more covert forms such as lobbying or CEO donations. 39 The backlash can come from both ends of the political spectrum. From the right, the Wall Street Journal has attacked firms that support cap-and-trade policy as "Kyoto capitalists" that seek to profit from a "cynical approach to regulation" whose costs are "foisted on the backs of others."…”

Section: The Case Against Cprmentioning

confidence: 99%

CSR Needs CPR: Corporate Sustainability and Politics

Lyon

Delmas²,

Maxwell³

et al. 2018

California Management Review

127

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Corporate sustainability has gone mainstream, and many companies have taken meaningful steps to improve their own environmental performance. But while corporate political actions such as lobbying can have a greater impact on environmental quality, they are ignored in most current sustainability metrics. It is time for these metrics to be expanded to critically assess firms based on the sustainability impacts of their public policy positions. To enable such assessments, firms must become as transparent about their corporate political responsibility (CPR) as their corporate social responsibility (CSR). For their part, rating systems must demand such information from firms and include evaluations of corporate political activity in their assessments of corporate environmental responsibility.

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Section: The Case Against Cprmentioning

confidence: 99%

CSR Needs CPR: Corporate Sustainability and Politics

Lyon

Delmas²,

Maxwell³

et al. 2018

California Management Review

127

View full text Add to dashboard Cite

show abstract

“…Nevertheless, it is interesting that the result shows this shield mechanism even if the effect on market value is still negative. Thus, there might be a limit to the power of the political connection; it is possible that the political connection might be linked with reputational stigma and illegitimate practices (Aggarwal et al , 2012; McDonnell and Werner, 2018).…”

Section: Discussionmentioning

confidence: 99%

Moderating the connections: media coverage and firm market value

Gama

Lana²,

Bueno³

et al. 2022

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Purpose The purpose of this paper is to explore how a politically connected firm moderates the relationship between media coverage and market value. More specifically, the authors are interested in the interplay of an external corporate governance (CG) mechanism with an internal one. By interacting different mechanisms, this paper advances the empirical setting of application and functions of the corporate governance. Design/methodology/approach This paper tests the hypotheses presented using panel data with a fixed-effect model, by assembling and exploiting a unique, hand-collected set of data on media coverage consisting of over 164,000 media reports and a politically connected board of directors comprising over 12,000 CVs tracked from 2010 to 2014. Data is originally from Brazil, a country where political connections are highly used by firms and that has been a place of much research on corporate political activity. Findings The results of this paper suggest that a politically connected board of directors can mitigate the negative effects of media coverage on market value. Overall, the results imply that the validity of a CG mechanism might be affected by other mechanisms. Research limitations/implications The findings of this paper imply the need for research focusing on the mutual effects of different CG mechanisms. While CG is understood as a set of mechanisms, new research could focus on the interplay of these mechanisms. Practical implications The findings suggest that the presence of former politicians and government officers on the board dissipates bad news reported by the media and boosts market value when media is positive. To maximize investment returns, investors should analyze firms' political human capital. Originality/value To the best of the authors’ knowledge, this paper is the first to develop hypotheses on the moderation effects of a politically connected board on the relation between media coverage and market value. This is relevant because this brings insights on how firms could jointly manage these mechanisms.

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How Do Corporate Political Connections Influence Financial Reporting? A Theory-Building Review of the Literature

Preuss

Königsgruber

2019

SSRN Journal

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Into the Dark: Shifts in Corporate Political Activity after Social Movement Challenges

Cited by 3 publications

References 69 publications

CSR Needs CPR: Corporate Sustainability and Politics

CSR Needs CPR: Corporate Sustainability and Politics

Moderating the connections: media coverage and firm market value

How Do Corporate Political Connections Influence Financial Reporting? A Theory-Building Review of the Literature

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