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Firm value impact of corporate activism: Facebook and the stop hate for profit campaign

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  • Villagra, Nuria
  • Monfort, Abel
  • Méndez-Suárez, Mariano

Abstract

Corporate activism is a growing practice whereby companies take a stand on a social, political, or environmental issue, usually controversial, to contribute to social change. This research examines a corporate activism action targeting a company and conducted through a corporate boycott. The research has analyzed the stock market performance of the target (Facebook) and the sponsor companies after the Stop Hate for Profit campaign. The results show that the company that suffers boycott receives a significant negative effect on the stock market, but the sponsoring companies have no effect. Thus, even though corporate activism is a stakeholder demand and previous research highlights its importance on brand management strategies, the companies that support it do not obtain a positive impact on the value of their share prices. The article presents a series of recommendations for practitioners and academics.

Suggested Citation

  • Villagra, Nuria & Monfort, Abel & Méndez-Suárez, Mariano, 2021. "Firm value impact of corporate activism: Facebook and the stop hate for profit campaign," Journal of Business Research, Elsevier, vol. 137(C), pages 319-326.
    • Handle: RePEc:eee:jbrese:v:137:y:2021:i:c:p:319-326
    DOI: 10.1016/j.jbusres.2021.08.052
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    3. Teresa Pintado Blanco & Carlota López-Aza & Joaquín Sánchez & Pablo Gutiérrez‐Rodríguez, 2023. "The Side Effect of Political Standing: Corporate Activism and Its Impact on Stock Returns," Politics and Governance, Cogitatio Press, vol. 11(2), pages 138-146.
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    5. Jin, Chenfei & Monfort, Abel & Chen, Feng & Xia, Neng & Wu, Bao, 2024. "Institutional investor ESG activism and corporate green innovation against climate change: Exploring differences between digital and non-digital firms," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    6. Ahmad, Fayez & Guzmán, Francisco & Kidwell, Blair, 2022. "Effective messaging strategies to increase brand love for sociopolitical activist brands," Journal of Business Research, Elsevier, vol. 151(C), pages 609-622.

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