Title: The Role of Mutual Funds in Corporate Governance: Evidence from Mutual Funds’ Proxy Voting and Trading Behavior
Abstract:Abstract This paper examines mutual fund families’ proxy voting records to analyze their choices between voting against management (“voice”) and voting with their feet (“exit”). Even though proxy voti...Abstract This paper examines mutual fund families’ proxy voting records to analyze their choices between voting against management (“voice”) and voting with their feet (“exit”). Even though proxy voting is particularly conducive to governance through voice rather than exit, we provide evidence that both exit and voice are important governance mechanisms when Institutional Shareholder Services recommends voting against management. Funds with smaller ownership blocks and shorter investment horizons are more likely to exit, and funds are more likely to exit small, liquid firms with greater insider ownership.Read More
Publication Year: 2016
Publication Date: 2016-04-01
Language: en
Type: article
Indexed In: ['crossref']
Access and Citation
Cited By Count: 56
AI Researcher Chatbot
Get quick answers to your questions about the article from our AI researcher chatbot