Abstract

http://ssrn.com/abstract=1894942
 
 

References (35)



 
 

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The Role of Mutual Funds in Corporate Governance: Evidence from Mutual Funds’ Proxy Voting and Trading Behavior


Ying Duan


University of Alberta - Department of Finance and Statistical Analysis

Yawen Jiao


University of California, Riverside

December 23, 2013


Abstract:     
This paper examines mutual fund families’ proxy voting records to analyze their choices between voting against management and “voting with their feet” (i.e., exit). Despite the fact that proxy voting is a scenario in favor of governance through voting than through exit, we provide evidence that both exit and voting are important governance mechanisms when management’s recommendations on proposals conflict with those of Institutional Shareholder Services. Funds with smaller ownership blocks and shorter investment horizon are more likely to exit and funds are more likely to exit small, liquid firms with greater insider and other institutional ownership.

Number of Pages in PDF File: 45

Keywords: mutual funds, proxy voting, trading, governance

JEL Classification: G23, G34

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Date posted: July 25, 2011 ; Last revised: December 25, 2013

Suggested Citation

Duan, Ying and Jiao, Yawen, The Role of Mutual Funds in Corporate Governance: Evidence from Mutual Funds’ Proxy Voting and Trading Behavior (December 23, 2013). Available at SSRN: http://ssrn.com/abstract=1894942 or http://dx.doi.org/10.2139/ssrn.1894942

Contact Information

Ying Duan (Contact Author)
University of Alberta - Department of Finance and Statistical Analysis ( email )
2-32C Business Building
Edmonton, Alberta T6G 2R6
Canada

Yawen Jiao
University of California, Riverside ( email )
Riverside, CA 92521
United States
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References:  35
Citations:  5

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