Firm value impact of corporate activism: Facebook and the stop hate for profit campaign

Nuria Villagra, Abel Monfort and Mariano Méndez-Suárez

Journal of Business Research, 2021, vol. 137, issue C, 319-326

Abstract: Corporate activism is a growing practice whereby companies take a stand on a social, political, or environmental issue, usually controversial, to contribute to social change. This research examines a corporate activism action targeting a company and conducted through a corporate boycott. The research has analyzed the stock market performance of the target (Facebook) and the sponsor companies after the Stop Hate for Profit campaign. The results show that the company that suffers boycott receives a significant negative effect on the stock market, but the sponsoring companies have no effect. Thus, even though corporate activism is a stakeholder demand and previous research highlights its importance on brand management strategies, the companies that support it do not obtain a positive impact on the value of their share prices. The article presents a series of recommendations for practitioners and academics.

Keywords: Corporate activism; Corporate boycotts; Financial performance; Stock market reaction; Event analysis; CARs; CSR (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0148296321006135
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:jbrese:v:137:y:2021:i:c:p:319-326

DOI: 10.1016/j.jbusres.2021.08.052

Access Statistics for this article

Journal of Business Research is currently edited by A. G. Woodside

More articles in Journal of Business Research from Elsevier
Bibliographic data for series maintained by Catherine Liu ().