Shareholder Satisfaction with Overlapping Directors

53 Pages Posted: 28 Oct 2019

See all articles by Rachel Li

Rachel Li

University of Alabama - Department of Economics, Finance and Legal Studies

Miriam Schwartz-Ziv

Hebrew University of Jerusalem - Department of Finance and Banking; Michigan State University - Department of Finance

Date Written: October 17, 2019

Abstract

We find that mutual fund shareholders are particularly supportive of directors who serve simultaneously on a corporate board and a mutual fund board (overlapping directors). Such support is observed both for connected funds, which share a director with a company, and for non-connected funds, which do not share a director with the company. Our results imply that the benefits overlapping directors offer to all fund shareholders exceed the costs. Mutual funds are particularly supportive of overlapping directors when monitoring is needed. Our results suggest overlapping directors are more valuable to fund shareholders than to other types of shareholders.

Keywords: Shareholder votes, overlapping directors, interlocking boards, busy directors, mutual funds, directors

JEL Classification: G30, G34, L20

Suggested Citation

Li, Qingqiu and Schwartz-Ziv, Miriam, Shareholder Satisfaction with Overlapping Directors (October 17, 2019). Available at SSRN: https://ssrn.com/abstract=3471560 or http://dx.doi.org/10.2139/ssrn.3471560

Qingqiu Li (Contact Author)

University of Alabama - Department of Economics, Finance and Legal Studies ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States

Miriam Schwartz-Ziv

Hebrew University of Jerusalem - Department of Finance and Banking ( email )

Mount Scopus
Jerusalem, 91905
Israel

Michigan State University - Department of Finance ( email )

315 Eppley Center
East Lansing, MI MICHIGAN 48824-1122
United States
8573127793 (Phone)
8573127793 (Fax)

HOME PAGE: http://miriamschwartzziv.wix.com/mysite

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