The Political CEO: An Event Study Comparing Consumer Attributions of CEO Behavior*

Abstract

Objective We sought to establish a relationship between negative political behavior of key firm members and consumer evaluations of the firm through an attribution theories extension. Method We sample and code approximately 1,500 Tweets surrounding Dan Cathy's political beliefs about marriage and Taco Bell's response to a lawsuit regarding beef. Results Consumers are more likely to attribute a volitional event (CEO political disapproval) toward the firm than toward societal elements. However, consumers experienced a greater degree of negative affect following the situational than the volitional event. Conclusion While none of the consumers who attributed this situation toward Taco Bell also communicated decisions to no longer return for Taco Bell products, approximately 15 percent of the consumers who attributed Dan Cathy's political beliefs toward Chick‐fil‐A communicated intentions to no longer return to Chick‐fil‐A. A firm operated by a political CEO could lose 15 percent of all its consumers.

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