Abstract

https://ssrn.com/abstract=2882949
 


 



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


Mary-Hunter McDonnell


The Wharton School - The University of Pennsylvania

Timothy Werner


University of Texas at Austin - Red McCombs School of Business

December 8, 2016


Abstract:     
Using a unique database on social movement boycotts of corporations, we examine how firms alter their political activities in the wake of a reputational threat. We show that boycotts lead to significant reductions in the amount of targets’ political action committee campaign contributions and simultaneous increases in targets’ CEOs’ personal campaign contributions, as well as targets’ lobbying expenditures. We argue that these patterns represent a shift toward more covert forms of political engagement that present new problems for activists and shareholders seeking to monitor corporate political activity.

Number of Pages in PDF File: 49

Keywords: nonmarket strategy, corporate political activity, social movements, disclosure, campaign contributions, lobbying


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Date posted: December 10, 2016  

Suggested Citation

McDonnell, Mary-Hunter and Werner, Timothy, Into the Dark: Shifts in Corporate Political Activity after Social Movement Challenges (December 8, 2016). Available at SSRN: https://ssrn.com/abstract=2882949

Contact Information

Mary-Hunter McDonnell (Contact Author)
The Wharton School - The University of Pennsylvania ( email )
3641 Locust Walk
Philadelphia, PA 19104-6365
United States

Timothy Werner
University of Texas at Austin - Red McCombs School of Business ( email )
United States
5122326844 (Phone)
HOME PAGE: http://timothywerner.com

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