Name:
ssrn-4506862.pdf
Embargo:
2026-05-10
Size:
1.087Mb
Format:
PDF
Description:
Final Accepted Manuscript
Affiliation
Eller College of Management, University of ArizonaIssue Date
2024-05-10
Metadata
Show full item recordPublisher
Elsevier BVCitation
Mkrtchyan, A., Sandvik, J., & Xu, D. (2024). Employee responses to CEO activism. Journal of Accounting and Economics, 101701.Rights
© 2024 Elsevier B.V. All rights are reserved, including those for text and data mining, AI training, and similar technologies.Collection Information
This item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.Abstract
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.Note
24 month embargo; first published 10 May 2024ISSN
0165-4101Version
Final accepted manuscriptae974a485f413a2113503eed53cd6c53
10.1016/j.jacceco.2024.101701