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Does the market value CEO climate activism? Evidence from the we mean business letter

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  • Wingender, John
  • Lucey, Brian

Abstract

CEO corporate activism is relatively new. Alignment theory predicts that a CEO’s public stance could improve firm value via a positive impact on shareholders, employees and/or customers. The signing of the Open Letter to President Biden by 408 US CEOs and investors, organized by the We Mean Business Coalition, encouraged US President Biden's commitment to climate change. The publication of this letter on April 13, 2021, provides an experiment to test the impact of Top Tier Management CEO sociopolitical activism on firm value. The event study results find robust, significant positive short-term and long-term impacts on firm value.

Suggested Citation

  • Wingender, John & Lucey, Brian, 2026. "Does the market value CEO climate activism? Evidence from the we mean business letter," Finance Research Letters, Elsevier, vol. 87(C).
    • Handle: RePEc:eee:finlet:v:87:y:2026:i:c:s1544612325021828
    DOI: 10.1016/j.frl.2025.108929
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets

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