Corporate social anti-activism and firm stock price: Evidence from DEI program elimination

Robert D. Evans and Leiza Nochebuena-Evans

Finance Research Letters, 2025, vol. 76, issue C

Abstract: Corporate social activism (CSA) has become a mainstay for U.S.-based firms seeking to curry favor with consumers and investors. Despite studies showing improvements to a wide range of firm metrics as a result of the adoption and implementation of these programs, recent changes in the U.S. social and political environments have moved some firms to adopt a corporate social anti-activist (CSAA) stance, rejecting or eliminating firm participation in such programs. Our study empirically investigates the impact of the adoption of a CSAA stance, through the elimination of participation in DEI programs, on firm stock price. Findings suggest that firm adoption of CSAA leads to short-term improvements in shareholder wealth.

Keywords: Corporate social activism; Corporate social anti-activism; Dei; Stock performance; Shareholder wealth; Shareholder theory; Signaling theory (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:76:y:2025:i:c:s1544612325002326

DOI: 10.1016/j.frl.2025.106968

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