Abstract

http://ssrn.com/abstract=1526081
 
 

References (84)



 
 

Citations (2)



 


 



Shareholders in the Boardroom: Wealth Effects of the SEC’s Rule to Facilitate Director Nominations


Ali C. Akyol


University of Melbourne - Department of Finance; Financial Research Network (FIRN)

Wei Fen Lim


University of Melbourne

Patrick Verwijmeren


Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE)

June 7, 2010

Journal of Financial and Quantitative Analysis (JFQA), Forthcoming
23rd Australasian Finance and Banking Conference 2010 Paper

Abstract:     
Current attempts to reform financial markets presume that shareholder empowerment benefits shareholders. We investigate the wealth effects associated with the SEC’s rule to facilitate director nominations by shareholders. Our results are not in line with shareholder empowerment creating value: the average daily abnormal returns surrounding events that increase (decrease) the probability of passage of the proposal are significantly negative (positive). Furthermore, given an increase in the probability of passage of the proposal, firms whose shareholders are more likely to use the rule to nominate directors experience more negative abnormal returns.

Number of Pages in PDF File: 50

Keywords: Director nominations, shareholder empowerment, proxy access, board effectiveness

JEL Classification: G34, G38

working papers series


Download This Paper

Date posted: December 22, 2009 ; Last revised: June 30, 2011

Suggested Citation

Akyol, Ali C. and Lim, Wei Fen and Verwijmeren, Patrick, Shareholders in the Boardroom: Wealth Effects of the SEC’s Rule to Facilitate Director Nominations (June 7, 2010). Journal of Financial and Quantitative Analysis (JFQA), Forthcoming; 23rd Australasian Finance and Banking Conference 2010 Paper. Available at SSRN: http://ssrn.com/abstract=1526081 or http://dx.doi.org/10.2139/ssrn.1526081

Contact Information

Ali C. Akyol (Contact Author)
University of Melbourne - Department of Finance ( email )
198 Berkeley Street
Faculty of Economics and Commerce
Carlton VIC 3010, Victoria 3010
Australia
+61 (3) 8344-5318 (Phone)
+61 (3) 8344-6914 (Fax)
HOME PAGE: http://www.aliakyol.com
Financial Research Network (FIRN)
C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia
HOME PAGE: http://www.firn.org.au

Wei Fen Lim
University of Melbourne ( email )
Melbourne, Victoria 3010
Australia
Patrick Verwijmeren
Erasmus University Rotterdam (EUR) - Erasmus School of Economics (ESE) ( email )
P.O. Box 1738
3000 DR Rotterdam, NL 3062 PA
Netherlands
Feedback to SSRN


Paper statistics
Abstract Views: 1,897
Downloads: 295
Download Rank: 58,365
References:  84
Citations:  2

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo5 in 0.281 seconds