The Influence of CEO Political Outspokenness on Stock Market Reaction and Firm Performance

Acharya, Keshab; Abebe, Michael; Kroll, Mark

doi:10.5465/ambpp.2019.25

Cited by 3 publications

(4 citation statements)

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“…Dodd and Supa, 2014). Others used alternative terms, such as “CEO outspokenness” (Acharya et al , 2019). This supports the present authors’ maximum inclusion strategy.…”

Section: Resultsmentioning

confidence: 99%

“…While individual studies find a positive impact on abnormal stock returns in response to CEO activism (Acharya et al , 2019; Mkrtchyan et al , 2020; Afego and Alagidede, 2021), others identified mechanisms like the firm’s relevance or investors’ political (mis)alignment that may lead to a contrary effect (Durney et al , 2020). Considering the case of several CEOs leaving the US president’s advisory council in 2017, Bedendo and Siming (2020) saw significant negative stock reactions because of investors’ fear of losing political influence.…”

Section: Resultsmentioning

confidence: 99%

“…Several authors, additionally, prove higher productivity, innovativeness and, consequentially, higher firm value, provoked by CEO activism that aligns with stakeholders’ views (Melloni et al , 2019; Babenko et al , 2020). The resulting attractiveness of investing in the coherent stock (Acharya et al , 2019) is driven not only by performance measures (Mkrtchyan et al , 2020) but also by “investors’ affective reaction” (Durney et al , 2020, p. 29).…”

Section: Resultsmentioning

confidence: 99%

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CEO activism. What do we know? What don’t we know? A systematic literature review

Rumstadt

Kanbach

2022

SBR

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Purpose Chief Executive Officer (CEO) activism, i.e. executives, publicly weighing in on sociopolitical debates, is an area of increasing interest in academia and business. This young research field provides valuable insights, but it still represents a scattered discussion in a variety of disciplines. Thus, this paper aims to present a guiding framework, integrate current knowledge, aggregate published findings and outline avenues for future research. Design/methodology/approach The authors conducted a systematic literature review building on a sample of 36 publications. In consequence, 1,146 lead themes were derived and studied in an in-depth qualitative analysis by deploying a pattern-inducing method. Findings Research on CEO activism can be placed on a time-oriented logic, giving insights into the realisation of activism, stakeholder reactions, moderators and perception effects. These four aggregate dimensions can be explained by 15 second-order themes and 48 more detailed first-order themes. Practical implications Considering the risks and benefits of CEO activism, top executives and communication professionals should be aware of its implications. This paper provides an integrated view of the different mechanisms and potential effects of CEO activism. Thereby, it proposes communicative planning from activism’s realisation to its perceptual results. Originality/value The study provides a holistic view of CEO activism as a starting point for further discussion. To the latest of the authors’ knowledge, this work is the first integrated conceptualisation of the discussion of CEO activism. The proposed avenues for future research stem from a detailed examination of published knowledge.

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“…Dodd and Supa, 2014). Others used alternative terms, such as “CEO outspokenness” (Acharya et al , 2019). This supports the present authors’ maximum inclusion strategy.…”

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

Section: Resultsmentioning

confidence: 99%

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CEO activism. What do we know? What don’t we know? A systematic literature review

Rumstadt

Kanbach

2022

SBR

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“…Regarding the consequential reactions of stakeholders, publications proved impact on customer reactions, such as purchase intentions (Dodd and Supa, 2014), supplier switching intentions (Durney et al ., 2020), willingness to pay (Hinterecker et al ., 2018), employee reactions, such as identifying with their employer (Mkrtchyan et al. , 2023), work performance (Brown et al ., 2020), turnover intentions (Babenko et al ., 2020) and the effects of activism as a signal for a CEO’s authentic leadership resulting in higher employer attractiveness evaluation and employer decision (Appels, 2022; Voegtlin et al ., 2019), and shareholder or investor reactions, such as abnormal stock return developments (Acharya et al ., 2019), board restrictions (Wolfe, 2020) and the willingness to invest in a company (Durney et al. , 2020).…”

Section: Literature Reviewmentioning

confidence: 99%

CEO activism is not equal to CEO activism: a typology of executives' political statements

Rumstadt,

Kanbach,

Arweck

et al. 2024

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PurposeWhen CEOs are publicly weighing in on sociopolitical debates, this is known as CEO activism. The steadily growing number of such statements made in recent years has been subject to a flourishing academic debate. This field offers first profound findings from observational studies. However, the discussion of CEO activism lacks a thorough theoretical grounding, such as a shared concept accounting for the heterogeneity of sociopolitical incidents. Thus, the aim of this paper is to provide an archetypal framework for CEO activism.Design/methodology/approachThe authors used a multiple case study approach on 145 activism cases stated by CEOs and found seven distinct statement archetypes.FindingsThe study identifies four main structural design elements accounting for the heterogeneity of activism, i.e. the addressed meta-category of the statement, the targeted outcome, the used tonality and the orientation of the CEOs’ positions. Further, the authors found seven distinguishable archetypes of CEO activism statements: “Climate Alerts”, “Economy Visions”, “Political Comments”, “Self-reflections and Social Concerns”, “Tech Designs”, “Unclouded Evaluations” and “Descriptive Explanations”.Research limitations/implicationsThis typology classifies the heterogeneity of CEO activism. It will enable the analysis of interrelationships, mechanisms and motivations on a differentiated level and raise the comprehensibility of research-results.Practical implicationsThe framework supports executives in understanding the heterogeneity of CEO activism and to analyse personality-fits.Originality/valueTo the authors’ knowledge, this marks the first conceptualisation of activism developed cross-thematically. The work supports further theory-building on CEO activism.

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CEOs on LinkedIn, ESG Communication and Listed SMEs Stock Performance During COVID-19 Pandemic

Filotto,

Sgrulletti,

Stella

2023

Global Business Review

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This study explores the relationship between LinkedIn ESG-related activities of CEOs and the stock market performance of their respective companies. The study analyses data of CEOs of listed SMEs on Euronext Growth Milan and their LinkedIn activity, along with their company’s performance. In particular, this study focuses on the diffusion of ESG topic-related contents during the COVID-19 pandemic on LinkedIn using a sample of approximately 37 thousand activities and more than 2 million words examined. Clustering the sample of SMEs in n.2 groups by stock performance with k-means method, we applied textual analysis to identify LinkedIn contents containing ESG topic-related contents. The study found a significant and positive correlation between CEOs’ ESG-related LinkedIn and their company’s stock market performance. Results show that CEOs of best performing SMEs share a higher volume of ESG contents and they suggest a role of LinkedIn in ESG information dissemination on financial markets.

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The Influence of CEO Political Outspokenness on Stock Market Reaction and Firm Performance

Cited by 3 publications

References 0 publications

CEO activism. What do we know? What don’t we know? A systematic literature review

CEO activism. What do we know? What don’t we know? A systematic literature review

CEO activism is not equal to CEO activism: a typology of executives' political statements

CEOs on LinkedIn, ESG Communication and Listed SMEs Stock Performance During COVID-19 Pandemic

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