Title

Shareholder Voting and Corporate Governance Around the World

Publication Date

11-4-2010

Abstract

Using a sample of non-U.S. firms from 43 countries, we investigate whether laws and regulations as well as votes cast by U.S. institutional investors are consistent with an effective shareholder voting process. We find that laws and regulations allow for meaningful votes to be cast as shareholder voting is both mandatory and binding for important elections. For votes cast, we find there is greater dissent voting when investors fear expropriation. Further, greater dissent voting is associated with higher director turnover and more M&A withdrawals. Our results suggest that shareholder voting is an effective mechanism for exercising governance around the world.

Document Type

Article

Keywords

Corporate Governance, Voting, Insider Control, Shareholder Protection, Institutional Investors

Disciplines

Finance

DOI

10.2139/ssrn.1702546

Source

SMU Cox: Finance (Topic)

Language

English

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