Gender Inequality, Social Movement, and Company Actions: How Do Wall Street and Main Street React?

60 Pages Posted: 25 May 2023

See all articles by Angie Fairchild

Angie Fairchild

University of North Carolina (UNC) at Chapel Hill

Olga Hawn

University of North Carolina (UNC) at Chapel Hill - Management-Strategy Area

Ruth V. Aguilera

Northeastern University - Department of International Business and Strategy

Anatoli Colicev

University of Liverpool - Management School (ULMS)

Yakov Bart

Northeastern University - D'Amore-McKim School of Business

Date Written: May 24, 2023

Abstract

Companies face increasing pressure from different stakeholders to address various environmental, social and governance (ESG) issues. In their efforts to engage with these issues, they might pursue symbolic or substantive actions, either pre-emptively (proactive actions) or in response to specific targeted threats (reactive actions). Yet we know relatively little about how different stakeholders react to this repertoire of corporate actions and importantly, whether they are aligned in their reaction. We ask this question in the context of gender inequality, an issue that has become salient due to heightened societal attention thanks to the #MeToo movement. We analyze reactions to company actions among two stakeholder groups, “Wall Street” (investors) and “Main Street” (the general public and consumers). Our sample includes 849,272 company-day observations covering 424 companies between 2015 and 2020. We identify 632 gender-related company actions and uncover that Wall Street and Main Street are surprisingly aligned in their negative reaction to companies’ symbolic-reactive actions, as evidenced by negative cumulative abnormal returns, more negative social media and reduced consumer perceptions of brand equity. Importantly, neither group of stakeholders reacts—positively or negatively—to any other types of company actions. Moreover, Main Street’s negative reaction has only emerged in the aftermath of the #MeToo movement. Our study shows that while company actions to address gender inequality are heterogeneous, stakeholder reactions seem to be aligned, and some of them are affected by social movements. This paper advances managerially relevant insights at the intersection of stakeholder management and grand challenges, such as gender inequality.

Keywords: gender inequality, stakeholder reactions, #MeToo movement, social media, investors, consumers

JEL Classification: M14

Suggested Citation

Fairchild, Angelyn and Hawn, Olga and Aguilera, Ruth V. and Colicev, Anatoli and Bart, Yakov, Gender Inequality, Social Movement, and Company Actions: How Do Wall Street and Main Street React? (May 24, 2023). Northeastern U. D’Amore-McKim School of Business Research Paper No. 4458466, Available at SSRN: https://ssrn.com/abstract=4458466 or http://dx.doi.org/10.2139/ssrn.4458466

Angelyn Fairchild (Contact Author)

University of North Carolina (UNC) at Chapel Hill

Olga Hawn

University of North Carolina (UNC) at Chapel Hill - Management-Strategy Area ( email )

Chapel Hill, NC 27599
United States

Ruth V. Aguilera

Northeastern University - Department of International Business and Strategy ( email )

Boston, MA 02115
United States

Anatoli Colicev

University of Liverpool - Management School (ULMS) ( email )

Yakov Bart

Northeastern University - D'Amore-McKim School of Business ( email )

Boston, MA 02115
United States

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