Determinants and Impact of Private Politics: An Empirical Analysis
AbstractThis paper studies the links between private politics, environmental performance of firms and regulatory activity by the government. Following the terminology coined by Baron (2001), "private politics" refers to the individual or collective actions initiated by public interest and activist groups to further their objectives without relying on the law or regulation. In this paper, we focus on the determinants and effects of two such private political actions, boycotts and proxy contests. We have unique data on boycotts for the time period 1988-95 and on proxy votes for the time period 1988-2000. We find that the size of a firm is an important predictor of the fact if a firm will be chosen as a target of an activist campaign. We find MIXED support for Baron's (2006) theory that activist campaigns will focus on "soft targets" (progressive firms). Our preliminary findings show that private politics does spur the firms to adopt voluntary environmental systems. Specifically, we find that the boycotts increase the probability of adoption of an environmental management system by 27-33 percent.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association) in its series 2008 Annual Meeting, July 27-29, 2008, Orlando, Florida with number 6238.
Date of creation: 2008
Date of revision:
Contact details of provider:
Postal: 555 East Wells Street, Suite 1100, Milwaukee, Wisconsin 53202
Phone: (414) 918-3190
Fax: (414) 276-3349
Web page: http://www.aaea.org
More information through EDIRC
This paper has been announced in the following NEP Reports:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Anton, W.R.Q.Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2004.
"Incentives for environmental self-regulation and implications for environmental performance,"
Journal of Environmental Economics and Management,
Elsevier, vol. 48(1), pages 632-654, July.
- Anton, Wilma Rose Q. & Deltas, George & Khanna, Madhu, 2002. "Incentives for Environmental Self-Regulation and Implications for Environmental Performance," Working Papers 02-0120, University of Illinois at Urbana-Champaign, College of Business.
- Koku, Paul Sergius & Akhigbe, Aigbe & Springer, Thomas M., 1997. "The Financial Impact of Boycotts and Threats of Boycott," Journal of Business Research, Elsevier, vol. 40(1), pages 15-20, September.
- Siew Hong Teoh & Christopher Paul Wazzan & Ivo Welch, 1996.
"The Effect Of Socially Activist Investment Policies On The Financial Markets: Evidence From The South African Boycott,"
Yale School of Management Working Papers
ysm70, Yale School of Management.
- Teoh, Siew Hong & Welch, Ivo & Wazzan, C Paul, 1999. "The Effect of Socially Activist Investment Policies on the Financial Markets: Evidence from the South African Boycott," The Journal of Business, University of Chicago Press, vol. 72(1), pages 35-89, January.
- Ivo Welch & Siew Hong Teoh & Paul Wazzan, 1995. "The Effect of Socially Activist Investment Policies on the Financial Markets: Evidence from the South African Boycott," Finance _005, University of California at Los Angeles.
- John W. Maxwell & Thomas P Lyon & Steven C.. Hackett, 1995.
"Self-Regulation and Social Welfare: The Political Economy of Corporate Environmentalism,"
University of Chicago - George G. Stigler Center for Study of Economy and State
122, Chicago - Center for Study of Economy and State.
- Maxwell, John W & Lyon, Thomas P & Hackett, Steven C, 2000. "Self-Regulation and Social Welfare: The Political Economy of Corporate Environmentalism," Journal of Law and Economics, University of Chicago Press, vol. 43(2), pages 583-617, October.
- Baron, David P., 2002. "Private Politics and Private Policy: A Theory of Boycotts," Research Papers 1766, Stanford University, Graduate School of Business.
- Seema Arora & Timothy N. Cason, 1996. "Why Do Firms Volunteer to Exceed Environmental Regulations? Understanding Participation in EPA's 33/50 Program," Land Economics, University of Wisconsin Press, vol. 72(4), pages 413-432.
- Baron, David P., 2006. "A Positive Theory of Moral Management, Social Pressure, and Corporate Social Performance," Research Papers 1940, Stanford University, Graduate School of Business.
- David P. Baron, 2003. "Private Politics," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 12(1), pages 31-66, 03.
- Robert Innes, 2006. "A Theory of Consumer Boycotts under Symmetric Information and Imperfect Competition," Economic Journal, Royal Economic Society, vol. 116(511), pages 355-381, 04.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search).
If references are entirely missing, you can add them using this form.