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Partisan politics play out heavily in American boardrooms: research

XINHUA

發布於 2022年09月22日16:33 • Xia Lin

Photo taken in West Orange of New Jersey on April 26, 2021 shows a super moon rising over the Manhattan skyline in New York, the United States. (Xinhua/Wang Ying)

Senior leaders who tend to lean Republican are 3.2 percent more likely to leave their companies when they are "politically misaligned" with their colleagues.

NEW YORK, Sept. 22 (Xinhua) -- American corporations have never been more partisan, starting at the top with executives who often bring on like-minded managers belonging to the same political party, according to new research by Harvard Business School Associate Professor Elisabeth Kempf.

The findings come at a time of heightened political discord and polarization among Americans, Harvard Business School reported earlier this week.

The research sheds new light on how the same dynamics are unfolding in workplaces -- not only making executives squirm when their politics don't match the majority in the C-suite, but causing financial repercussions for businesses as well, the report said.

Senior leaders who tend to lean Republican are 3.2 percent more likely to leave their companies when they are "politically misaligned" with their colleagues, it said.

When politically misaligned executives leave, stock prices drop 1.7 percent more than when executives who share the political views of their colleagues depart, it added.

Investors may worry that executive teams are not hiring the best talent they can get, but are instead recruiting those with particular political leanings, Kempf was quoted as saying. ■

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