Employee responses to CEO activism

• 成果类型: Article
• 署名作者: Mkrtchyan, Anahit; Sandvik, Jason; Xu, Da
• 署名单位: University of Massachusetts System; University of Massachusetts Amherst; University of Arizona; Tsinghua University
• 刊物名称: JOURNAL OF ACCOUNTING & ECONOMICS
• ISSN/ISSBN: 0165-4101
• DOI: 10.1016/j.jacceco.2024.101701
• 发表日期: 2024
• 关键词: corporate social-responsibility; INNOVATION; IMPACT

摘要

We examine employee responses to CEO activism, the increasingly common practice of CEOs taking public stances on socio-political issues. CEO activism may bolster employees' identification with their organizations and strengthen shared beliefs among employees. Alternatively, CEO activism may alienate employees if CEO stances contrast with employees' ideologies. We find that employee satisfaction is higher when CEOs engage in activism that is aligned with employees' ideologies. Furthermore, firms with CEO activism experience a net inflow of productive, ideologically-aligned inventors, which contributes to increased firm-level innovation. The improvements in employee satisfaction and innovation constitute an important channel that connects aligned CEO activism to increased firm value.