How Corporate Sociopolitical Activism (CSA) impacts portfolio allocations: an experiment

Abstract If a firm signals that they identify on one end of the conservative-liberal spectrum, will political affiliation help predict how an investor allocate their investment dollars to firm? Using experimental survey design with 1,494 participants, evidence was found does materially allocation decisions investors firms engaged in corporate sociopolitical activism (CSA). More specifically, Democrats were more likely than Republicans towards signaling liberal identity through support LGBT social issues and Planned Parenthood. By comparison, conservative Religious Freedom Institute. In addition, both under-allocate (relative control group) engage CSA. Corporations should consider potential costs from under-allocation for taking public stands controversial partisan favor some constituents at expense others.