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Does corporate activism affect brand equity? an event study on 55 american brands

Brenstad, Ida Mathilde Stokke; Sølsnes, Malén Vestavik
Master thesis
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2288320.pdf (3.176Mb)
Raw Data Master Thesis.xlsx (21.38Kb)
STATA DO FILE MASTER THESIS.txt (5.481Kb)
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http://hdl.handle.net/11250/2622499
Utgivelsesdato
2019
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Samlinger
  • Master of Science [1117]
Sammendrag
With the rise of corporate activism many have questioned the partaking of

companies in political and social debates, and whether such engagement is

appropriate. And, maybe more importantly from a managerial perspective, is it

harmful or beneficial to the company? This paper adds to the very limited literature

on this topic which shows, despite CMOs opposition to such activities, corporate

activism is found to enhance brand equity. By investigating the political

involvement of 55 American brands from 2012 until today, the paper finds evidence

for corporate activism to have a positive impact on a company's brand equity,

which, in turn, is reflected through a change in firm value. Further, the results show

that the effect is significantly more positive if the statements comes from a CEO

relative to the company. The study also adds the dimension of controversy to

political engagement, and uncovers that highly controversial corporate activism

statements have a negative effect on brand equity.
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Masteroppgave(MSc) in Master of Science in Strategic Marketing Management - Handelshøyskolen BI, 2019
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