Impact of Corporate Response to Controversial Presidential Statements or Policies on Shareholder Price

Abstract

This research explores the obligation, if any, a corporate leader has to make a statement in regards to communications issued by the President of the United States perceived as inconsistent with the values of the corporation and further assesses the financial impact of making a statement using an accounting method to assess stock change based on earnings announcements. The study focuses on corporate integrity within the framework of three controversial communications made during President Trump’s first year of office and specifically offers a case study in regards to the corporate leaders who served on his presidential advisory councils. The paper provides an answer to the question, "Does what a CEO says in response to the President impact the corporation's financial bottom line?"