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# Weary of Executives with Forceful Political Attitudes? You’re Not the Only One, Research Demonstrates
From Tesla’s (TSLA) Elon Musk speaking at Donald Trump’s gatherings to JPMorgan Chase & Co.’s (JPM) Jamie Dimon voicing his thoughts on everything from tariffs to Ukraine, more and more CEOs are revealing their political and social perspectives. However, a study from the University of Iowa implies that investors actually favor it when company executives keep quiet about contentious matters. As a matter of fact, the response to quiet is just as favorable as when a CEO voices opinions that correspond with the investor’s own convictions.
Michael Denney, one of the researchers, told *The Des Moines Register*, “It’s quite surprising. If you only worry about investor reactions, the best course of action, honestly, is for CEOs to be quiet and handle things.”
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* New research reveals that investors favor CEOs who stay quiet on divisive topics, seeing it as favorably as when a CEO voices views that align with their own convictions.
* These days, well-known CEOs appear more inclined to take public positions on social and political concerns, which frequently seems illogical in terms of attracting positive attention to their company’s goods and services.
* However, businesses expressing their political opinions is not a recent phenomenon, but it has historically been accomplished through lobbying and political contributions.
## The Investigation on Politicized CEOs
Researchers at the University of Iowa recently looked into how CEOs expressing personal opinions affects investors.
Participants were informed about a made-up business in which they had invested $10,000, with the possibility of adding another $10,000 to their holdings. The CEO of this business then made one of the following remarks on social media:
a) Backed gun control
b) Voiced resistance to gun control
c) Remained silent regarding the matter.
Alright, here is my perspective on that piece, recast and with some additional background to make it more accessible for an English-speaking readership:
**Avoiding Discussion on Firearms Regulations**
Having thoroughly considered all the elements, the main objective is to evaluate the firm’s attractiveness as a possible investment opportunity.
**The Virtue of Discretion**
One of the more noteworthy discoveries is that prospective investors often respond favorably when chief executive officers stay quiet on specific controversial matters. It appears that this lack of comment can be just as advantageous as voicing viewpoints that match an investor’s individual convictions.
Scholars think this is because saying nothing lets investors impose their own presumptions, or at the very least, the expectation that the CEO shares their perspectives. It’s a method of circumventing potential discord and keeping the emphasis on commerce.
**Illustrations of CEOs Vocalizing**
This investigation from the University of Iowa was partially prompted by the growing quantity of CEOs taking public positions on political matters. In addition to individuals like Elon Musk and Jamie Dimon, Howard Schultz, while serving as CEO of Starbucks, has been known to openly discuss subjects such as gun violence, LGBTQ+ rights, racism, veterans’ rights, and student loan burdens.
Historically, corporations have engaged in politics via industry lobbying entities, Political Action Committees (PACs), and strategic campaign contributions. They would subsidize think tanks that championed their interests and become members of Chambers of Commerce to push for business-favorable policies.
When CEOs *did* speak out, it was typically through meticulously constructed pronouncements from the company’s PR department, narrowly concentrated on business-related policy concerns such as tax percentages or trade accords.
Nevertheless, things have evolved. The previous CEO of the Trump Organization, President Trump, assigned a multitude of CEOs to his cabinet and other crucial roles. This encompassed his selection for Secretary of Commerce, Howard Lutnick (Chairman of Cantor Fitzgerald, a major investor in the cryptocurrency Tether), and his choice for Secretary of Education, Linda McMahon (former CEO of WWE wrestling entertainment).
Scott Bessent, previously the main investment manager at Soros Fund Management, along with Elon Musk, will lead a short-term group for U.S. Dogecoin functions, taking the place of the prior U.S. Digital Service.
In summary:
New studies imply that the well-known saying “do not combine commerce and government” remains correct. Information reveals that when firms function in a politically divided setting, concentrating on commercial results instead of governmental discussion may be the smartest method to preserve shareholder trust and corporate worth.
