CEO values as antecedents to corporate political activity: An empirical exploration

In this article, we seek to contribute to the literature on corporate political activity (CPA) by exploring the impact of CEO values on this nonmarket activity. Building a database of CEO values by analyzing the text of quarterly earnings conference call transcripts, we test whether firms with CEOs who value achievement, universalism, or stimulation tend to invest in CPA. We argue that these three values indicate whether a CEO values advancing the interests of the firm (achievement), playing a responsible role in society (universalism), or personal satisfaction (stimulation). We find that of the three, only stimulation is positively associated with CPA, suggesting that CEOs are using CPA to satisfy themselves personally rather than achieving higher firm performance or advancing society's interests, supporting the arguments of those who raise concerns over firm expenditures on CPA.