Shareholder Satisfaction with Overlapping Directors
53 Pages Posted: 28 Oct 2019
Date Written: October 17, 2019
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: Suggested Citation