Investors' Attention to Corporate Governance

• 成果类型: Article
• 署名作者: Iliev, Peter; Kalodimos, Jonathan; Lowry, Michelle
• 署名单位: Pennsylvania Commonwealth System of Higher Education (PCSHE); Pennsylvania State University; Pennsylvania State University - University Park; Oregon State University; Drexel University
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhab003
• 发表日期: 2021
• 页码: 5581
• 关键词: SHAREHOLDER ACTIVISM; AGENCY COSTS; firm; pay; BEHAVIOR; search; funds

摘要

Using unique data on investor views of EDGAR company filings, we document that many investors engage in governance research. However, investors' monitoring is disproportionately focused on large firms and firms with meetings outside the busy spring proxy season. Using an instrumental variables approach that isolates the drop in governance attention during the busy proxy season, we show that governance research is related to investors' monitoring of firms, through voice and exit. Moreover, governance research disciplines management, who, as a result, reduce investments and increase payouts. The concentration of attention results in joint monitoring of a relatively small subset of firms.