Can Online Annual General Meetings Increase Shareholders’ Participation in Corporate Governance?
Financial Management, Forthcoming
44 Pages Posted: 12 Nov 2015 Last revised: 4 Nov 2019
Date Written: November 1, 2019
We find that annual shareholder meetings conducted online can significantly increase the participation of shareholders, especially minority shareholders. This finding is more evident when the cost of physically attending the annual meeting is higher, and when the firm’s ownership is more dispersed. We further document significant positive stock returns when firms initiate annual online meetings. We also find that such online meetings help improve corporate governance. Overall, we provide evidence that online shareholder meetings provide shareholders a cost-effective way to participate in governance issues.
Keywords: Online annual general meetings; Shareholder participation; Corporate governance
JEL Classification: G30
Suggested Citation: Suggested Citation