Institutional Investor Composition and Proxy Access Proposals

19 Pages Posted: 7 Mar 2012  

Siona Robin Listokin

George Mason University - Schar School of Policy and Government; George Mason University - School of Policy, Government, and International Affairs

Date Written: March 6, 2012

Abstract

Does institutional ownership affect firm value when new proxy access rules are proposed? This paper analyzes whether the level and composition of institutional investor ownership impacts firm value on days when the US SEC proxy access proposals are announced. Using event-study methodology, the paper finds evidence indicating the number of institutional investors with significant corporate ownership has a small positive effect on firm value. When public pension funds are differentiated from other types of institutional investors, results show that public pension funds negatively impact stock value returns, while other types of institutional investors have a positive effect. Results are similar for institutional investors with smaller ownership stakes.

Keywords: Corporate governance, institutional shareholder, pension fund ownership

Suggested Citation

Listokin, Siona Robin, Institutional Investor Composition and Proxy Access Proposals (March 6, 2012). Available at SSRN: https://ssrn.com/abstract=2017188 or http://dx.doi.org/10.2139/ssrn.2017188

Siona Robin Listokin (Contact Author)

George Mason University - Schar School of Policy and Government ( email )

Founders Hall, Fifth Floor
3351 Fairfax Drive, MS 3B1
Arlington, VA 22201
United States

George Mason University - School of Policy, Government, and International Affairs ( email )

Founders Hall
3351 Fairfax Dr.
Arlington, VA 22201
United States

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