Corporate Political Activism May Not Be Good for Companies’ Bottom Lines
That’s suggested by data featured in today’s Harvard Business Review Daily Stat:
Big U.S. corporations that created political action committees and made other forays into politics bounced back with less bounce from the financial crisis, according to a study of S&P 500 firms by John C. Coates IV of Harvard Law School. The post-2008 increase in these companies’ industry-relative shareholder value was 8% lower, on average, than increases registered by politically inactive firms. Political engagement may dilute a company’s strategic focus and lead it to make wasteful investments, Coates says. (Source: Corporate Politics, Governance, and Value Before and After Citizens United)
Find the article which reveals the findings to which the Daily State refers here, in the Journal of Empirical Legal Studies.
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