MIS Speaker's Series: Nooshin Warren
1 p.m. to 2 p.m. Nov. 15, 2019
WhereMcClelland Hall 133
Nooshin Warren, Assistant Professor of Marketing at the University of Arizona
Title: Corporate Sociopolitical Activism and Firm Value
Abstract: Stakeholders have increasingly become more values-driven. For example, customers may buy from or boycott a firm based on its public stance on a sociopolitical issue. Firms have also increasingly been making purpose-driven efforts to demonstrate public support for or opposition to one side of a controversial sociopolitical issue, a phenomenon the authors call “corporate sociopolitical activism” (CSA). Such actions have the potential to both strengthen and sever stakeholder relationships making their impact on firm value uncertain. Building on stakeholder alignment theory, the authors analyze 293 CSA events, initiated by 149 firms across 39 industries, and find that investors react to CSA events depending on the (mis)alignment of the firm’s stance with the values of three key stakeholders: customers, employees, and government legislators. They find that CSA has (negative) positive financial consequences when (mis)aligned with stakeholders. They further identify four managerially controllable event characteristics that amplify or mitigate CSA’s vividness and consequently its effect on short-term stock returns. The findings guide the management of responses to CSA and provide novel implications for marketing theory and practice in an increasingly important public space.
Bio: Nooshin Warren is an assistant professor of marketing at the University of Arizona. She has received her Ph.D. in Marketing from Texas A&M University. Her research interest lies in marketing strategy with a substantive focus on innovation, activism, and the financial impact of marketing activities. Nooshin’s research has been published in JM, JMR and JAMS. Her recent work is focused on corporate sociopolitical culture as a motivator of activism and the financial consequences of such actions.