The Internet Will Drive Corporate Monitoring

Abstract

Using the internet for shareholder proxy voting will not just save money. It will give shareholders unprecedented influence over the policies of large corporations, by making "corporate monitoring" possible. Rational voter apathy will be counteracted by the internet's ability to make information exchange cheap and easy. Likely benefits include higher profits, support for social goals, and more realistic levels of CEO pay. Compared to other countries, America has more stock held by individuals who use the internet, so America will lead this trend.

JEL Classification: G32, G34, K22