Top companies are on students' divest list. But does it really work?

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Campus protesters want administrators to sell off investments in companies with ties to Israel. Here's a look at what divestment means — and why universities are saying no.

A demonstrator protests outside the encampment established in support of Palestinians in Gaza at Columbia University on April 29, 2024. Columbia protesters are demanding their university sell off investments in a number of companies with business ties to Israel.

The calls on campsus vary. Columbia University protesters, for example, have a broad list of divestment targets, demanding the Ivy League college disclose and unload investments in aProtests against university investments have a long history. Most analysts agree that divestments don't usually punish the companies targeted. And some analysts argue divestments actually are worse in the long run. By staying invested, the reasoning goes, universities can have more of a say about a company's operations. Selling off their investments would likely be scooped up by other investors who are less likely to speak up.

These are big reasons why almost no university has yet agreed to divest from investments tied to Israel, though a few have been willing to hold talks with protesters.

 

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