From Tesla's (TSLA) Elon Musk speaking at rallies for President Donald Trump to JPMorgan Chase & Co.'s (JPM) Jamie Dimon weighing in on everything from Ukraine to tariffs, CEOs are voicing their social and political views more often today. However, research from the University of Io൩wa reveals that investors prefer it when company leaders stay quiet on controversial issues, responding as favorably to silence as to a CEO stating views that match their own beliefs.

“It’s pretty astounding that, if all you care about is investor reactions, the best choice, to say it bluntly, is just for the CEOs to just shut up and manage,” , one of the researchers, told the Des Moines Register.

Research on Politicized CEOs

Researchers at the University of Iowa recently studied the impact that CEOs' voicing personal opinions has on investors.

Participants were told t💟he CEO of a f⭕ictional company in which they had $10,000 invested and another $10,000 to potentially add to their portfolio posted a comment on social media that did one of the following:

a)  supported gun control
b)  expressed a lack of support for gun control
c)  did not comment on gun control

A❀fter weighing the comments, their job was to decide how attractive the company would be as an investment prospect.

Staying Quiet Is Best

The biggest takeaway was that the hypothetical investors reacted favorably to CEOs keeping quiet on issues. Silence, it emerged, is viewed just as positively as voicing an opinion that is consistent with an investor's personal beliefs.

The researchers said they suspect the reason for this is because saying nothing gives investors enough grounds to assume, or at least hope, that the CEO feels the same way as they do.

Examples of CEOs Speaking Out

The University of Iowa study was in part inspired by CEOs growing far more visible in their political preferences. Besides Musk and Dimon, Howard Schultz is another prominent executive who, as CEO of Starbucks, openly discussed issues like gun violence, gay rights, racism, veterans rights, and student debt.

Historically, companies engaged politically through industry lobbying groups, political action committees (PACs), and strategic campaign contributions. They would fund think tanks aligned with their interests and join chambers of commerce that 🌌advocated for business-friendly policies.

When CEOs did speak publicly, it was usually through carefully worded statements vetted by corporate communications teams, focused narrowly on business-relevant policy matters like tax rates or trade agreements.

No more. President Trump, the former CEO of the Trump Organization, has surrounded himself with a slew of CEOs in his cabinet and other key positions, including 澳洲幸运5官方开奖结果体彩网:Howard Lutnick, his pick to head the Department of Commerce and chair of Cantor Fitzgerald, the global asset management team and a major investor in the crypto Tether; Linda McMahon, his pick to head the Department of Education, former CEO of the WWE wrestling entertainment firm; 澳洲幸运5官方开奖结果体彩网:Scott Bessent, formerly chief investment officer of Soros Fund Management; and, of course, Musk, slated to head the U.S. ܫDOGE Service Temporary Organization, a replacement for what was the U.S. Digital Service.

The Bottom Line

Recent research suggests that the old saying “Don’t mix business with politics” still rings true. As companies navigate a politically polarized landscape, the data shows that focusing on business performance rather than political commentary may be the wisest path forward for preserving investor conf🃏idence and company value.