Stakeholder Orientation and Operations Outcomes: Evidence from Constituency Statutes

We study the effect of stakeholder orientation on operations decisions. For identification, we exploit a quasi-natural experiment that effectively reduced potential personal costs for executives pursuing stakeholder-oriented decisions, the staggered adoption of constituency statutes. Using a staggered difference-in-difference approach, we find that firms incorporated in constituency states (treated firms) are 15.9 percentage points (pp) more...