Palestine Protestors Call for Divestment at US Universities Amid Uncertain Impact on Corporate Behavior

The ongoing protests in favor of Palestine at major universities across the United States have a unifying message: “Disclose! Divest! We will not stop, we will not rest!” This demand is being heard from Princeton University to the University of Southern California and even Columbia University’s West Lawn. The specific demands for divestment vary by school but generally involve selling shares in companies linked to Israel or those profiting from the Israeli-Hamas conflict. Other protesters want their universities to stop investing in weapons manufacturers, disclose investments, sever academic ties with Israeli institutions and support a ceasefire in Gaza.
Despite these demands, most schools have refused to divest and some experts question whether such campaigns are effective. Critics argue that while divestment can be an expression of dissent and call for change, its actual impact on corporate behavior is uncertain. Research shows little correlation between divestment movements and stock prices or company actions.
However, proponents suggest the value lies in raising awareness about targeted regimes or industries by stigmatizing partnerships with them. University investments are more complicated now than they were in previous campaigns since many endowments have private equity holdings managed outside their own organizations that cannot be easily divested from companies linked to Israel due to global economic ties between the US and Israel, as noted by Nicholas Dirks, former chancellor of UC Berkeley.
Despite this challenge, students at universities across America remain steadfast in demanding change until university administrators meet their demands. Negotiations have been ongoing but it remains uncertain whether any concessions will be granted beyond offering alternatives such as expunging records and reinstating suspended students to allow them to graduate.