Messaging and politics in firms : conveyance methods, culture messaging, and the presidential puzzle
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This dissertation investigates how firms strategically shape communication and behavior in response to investor attention and political environments, providing new insights into disclosure effectiveness, cultural signaling, and political cycles in financial markets. Chapter one explores how the mode of communication affects investor response. It finds that oral disclosures--especially those delivered in-person--generate stronger stock price reactions than written statements, even when the content is similar. These results underscore the importance of real-time social interaction and audience salience in driving investor attention. Chapter two examines how firms adjust their culture-related messaging in response to shifts in the U.S. political climate. During periods of heightened polarization, such as the Obama and Trump administrations, firms reduce cultural signaling, particularly when misaligned with the prevailing political leadership. These patterns suggest that culture messaging is a form of strategic communication shaped by the broader political context. Chapter three contributes to the literature on the "presidential puzzle" by identifying real economic mechanisms behind the pattern of lower stock returns during Republican presidencies. Firms experience lower sales growth, investment, and profitability--particularly in Democrat-leaning regions--indicating that political cycles have tangible effects on firm fundamentals. The findings offer a rational explanation for return differentials tied to partisan leadership. Collectively, this dissertation deepens our understanding of how firms manage communication and adapt operationally in politically and behaviorally complex environments.
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Ph. D.