Partisan Corporate Speech

William M. Cassidy and Elisabeth Kempf

No 33810, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: We develop a novel measure of partisan corporate speech and establish three stylized facts for S&P 500 firms from 2012 to 2022. First, partisan corporate speech rose sharply. Second, this rise was disproportionately driven by a broad-based increase in Democratic-leaning language. Third, synthetic-control estimates reveal significant and immediate negative return differences for surprising partisan statements, concentrated in responses to external events. We develop a model in which shifts in investor preferences can increase partisan speech even when such speech is associated with lower valuations, and provide evidence consistent with this mechanism.

JEL-codes: G0 G1 G23 G3 G4 (search for similar items in EconPapers)
Date: 2025-05
New Economics Papers: this item is included in nep-big
Note: CF POL
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