Investors' Attention to Corporate Governance
70 Pages Posted: 27 Apr 2018 Last revised: 15 Mar 2019
Date Written: March 6, 2019
Using unique data on investor views of EDGAR company filings, we document that many investors devote significant effort towards governance research: the five largest mutual fund families access proxy statements of 29% of their portfolio firms. However, investors’ monitoring is focused disproportionately on large firms, firms with low managerial entrenchment, and firms with meetings outside the busy spring proxy season. Passive indexer investors perform less research. Concentration of investor attention within the same firm meetings results in joint monitoring of a relatively small subset of firms. This attention is related to investors’ voting and investment decisions.
Keywords: Corporate Governance, Governance Research, Agency, Institutional Investors, ISS
JEL Classification: G30, G34
Suggested Citation: Suggested Citation