Shareholder Voting and Corporate Governance Around the World
Publication Date
11-19-2015
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
Source
SMU Cox: Finance (Topic)
Language
English
