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5 - Promise and Peril

Lessons from Shareholder Reactions to Corporate Political Activity Disclosure

from Section II - Transparency: Causes and Consequences

Published online by Cambridge University Press:  16 November 2023

By
Timothy Werner
Edited by
Thomas P. Lyon
Thomas P. Lyon
Affiliation:
University of Michigan, Ann Arbor
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Summary

This chapter examines the role of disclosure as a tool for promoting corporate political accountability by reviewing how shareholders reacted to various events in the United States and abroad that either changed the ability of firms to engage in the political process or revealed previously hidden corporate political activity. The conclusions drawn from this summary are mixed, with investors’ reactions contingent on myriad factors, including the form of the political activity engaged in, prior contestation over such activity by shareholders, and other firm-level nonmarket and market dynamics. The chapter concludes by discussing the limits of disclosure as a tool for regulating corporate political activity, as well as public policy more broadly, and advocates for broader, institutional reforms regarding the role of money in politics.

Keywords

disclosurelobbyingcampaign financeCitizens United v. Federal Election Commissionindependent expendituresdark moneyAmerican Legislative Exchange CouncilRepublican Governors Associationevent studyinvestor reactionshareholder resolutionscorporate governanceregulationemployee ideology
Type
Chapter
Information
Corporate Political Responsibility , pp. 124 - 154
Publisher: Cambridge University Press
Print publication year: 2023

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  • Promise and Peril
  • Edited by Thomas P. Lyon, University of Michigan, Ann Arbor
  • Book: Corporate Political Responsibility
  • Online publication: 16 November 2023
  • Chapter DOI: https://doi.org/10.1017/9781009420815.008
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  • Promise and Peril
  • Edited by Thomas P. Lyon, University of Michigan, Ann Arbor
  • Book: Corporate Political Responsibility
  • Online publication: 16 November 2023
  • Chapter DOI: https://doi.org/10.1017/9781009420815.008
Available formats
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Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Promise and Peril
  • Edited by Thomas P. Lyon, University of Michigan, Ann Arbor
  • Book: Corporate Political Responsibility
  • Online publication: 16 November 2023
  • Chapter DOI: https://doi.org/10.1017/9781009420815.008
Available formats
×