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TOPIC:
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THE VOICE: THE SHAREHOLDERS’ MOTIVES BEHIND CORPORATE DONATIONS
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ABSTRACT
What motivates shareholders to become prosocial activists? When the COVID19 pandemic began, political and media groups demanded COVID-19-related donations from large corporations. We study shareholder support for such donations, exploiting the heightened media scrutiny of annual general meetings. We find that the reputational gains enjoyed by shareholders of donating firms led prominent individual shareholders to seek donations. However, large institutional shareholders, who are rarely associated with specific corporations in their portfolios, preferred to donate independently, opposing donations in their footprints. This mechanism also operates in non-pandemic periods, highlighting the ability of media attention to increase support for visible prosocial decisions.
Keywords: exit and voice, shareholder activism, social responsibility, charitable donations, COVID-19, market exit, Ukraine, Russia.
JEL Codes: G32, G41, M14
Click here to view the CV.
Click here to view the paper.
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PRESENTER
Michele Fioretti
Sciences Po
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RESEARCH FIELDS
Empirical Industrial
Organization
Applied Microeconomics
Business Ethics
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DATE:
1 March 2023 (Wednesday)
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TIME:
4pm - 5.30pm
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VENUE:
Meeting Room 5.1, Level 5
School of Economics
Singapore Management University
90 Stamford Road
Singapore 178903
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