Institutional Investors and Corporate Political Activism
53 Pages Posted: 4 Nov 2015
Date Written: November 2015
The landmark decision by the U.S. Supreme Court on Citizens United v. Federal Election Commission asserts for the first time that corporations benefit from First Amendment protection regarding freedom of speech in the form of independent political expenditures, thus creating a new avenue for political activism. This paper studies how corporations adjusted their political activism in response to this ruling. The paper presents evidence consistent with the hypothesis that institutional investors have a preference for not using the new avenue for political activism, a preference not shared by other investors.
Keywords: Citizens United, Corporate Governance, Institutional Investors, Political Activism
JEL Classification: G23, G30
Suggested Citation: Suggested Citation