Corporate socio-political activism and retail investors: Evidence from the Black Lives Matter campaign

This study investigates retail investor responses to corporate engagement in socio-political activism (CSA). Using manually collected evidence of companies' support for the Black Lives Matter (BLM) campaign, we find that speaking up BLM attracts attention. However, it influences their investment decisions only if is backed by a monetary donation BLM-related causes on same day. effect observed companies have black directors board and headquartered Democrat-leaning states. There no corresponding increase firm value. Our results suggest preferences engage CSA are likely guided moral sentiment.