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The role of social capital on corporate social anti-activism and firm stock price: Evidence from DEI program elimination

Year: 2025

Type: article

Abstract: This study empirically investigates the impact of social capital on firm stock price following the adoption of corporate social anti-activism (CSAA). Using CSAA announcements from large, U.S.-based firms and social capital data, we find that firms located in regions with higher levels of social capital experience lower stock returns compared to those in areas with lower social capital. We also find that as social capital rises, the effect becomes more pronounced. Overall, our study suggests that for firms that adopt CSAA, social capital has implications for financial markets.

Source: Economics Letters

DOI: 10.1016/j.econlet.2025.112376

Authors: Leiza Nochebuena-Evans, Robert D. Evans, Augustine Tarkom

Institutions: Murray State University, Texas State University

Language: English

Topic: Corporate Social Responsibility Reporting

Subfield: Strategy and Management

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Decent work and economic growth

Open Access status: hybrid

Estimated APC paid: $3,030