Political catastrophe and firm strategies: Evidence from the capitol riot

Anqi Jiao, Han Ma and Honglin Ren

Finance Research Letters, 2022, vol. 48, issue C

Abstract: This study explores firms’ reactions to the 2021 U.S. Capitol Attack. We find that firms donating more to the 147 Republicans who voted to overturn the 2020 presidential election are more likely to speak out against the Capitol Attack to suspend political contributions. By doing so, firms mitigate negative stock market reactions and subsequently lower their political risk. Suspension of corporate political donations has profound impacts on the 147 Republicans that they almost lost all political contributions from private sectors right after the Capitol Attack. Our findings suggest that, when facing unexpected political catastrophes, firms make strategic political activist actions.

Keywords: Capitol attack; Political activism; Political catastrophe; Firm strategies (search for similar items in EconPapers)
JEL-codes: G32 P16 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1544612322002082
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:48:y:2022:i:c:s1544612322002082

DOI: 10.1016/j.frl.2022.102948

Access Statistics for this article

Finance Research Letters is currently edited by R. Gençay

More articles in Finance Research Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().