The Impact of the Institutional and Regulatory Environment on Shareholder Voting

Financial Management, Vol. 31, No. 4, Winter 2002

Posted: 22 Aug 2003

See all articles by Stuart Gillan

Stuart Gillan

University of Georgia - Department of Finance

Jennifer E. Bethel

Babson College

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Abstract

We document that certain features of the institutional and regulatory environment governing shareholder voting can affect the co-location of shares' voting and cash-flow rights. We show that "routine" management proposals, for which brokers can vote shares held in "street name" if investors fail to vote, receive more votes favorable to management than "nonroutine" proposals. Some proposals may pass because of a routine classification. Moreover, negative recommendations from the leading shareholder-voting advisory service are associated with fewer votes cast favorable to management. We also find voting results are related to ownership structure, the use of proxy solicitors, and other firm characteristics.

Suggested Citation

Gillan, Stuart L. and Bethel, Jennifer, The Impact of the Institutional and Regulatory Environment on Shareholder Voting. Financial Management, Vol. 31, No. 4, Winter 2002. Available at SSRN: https://ssrn.com/abstract=359642

Stuart L. Gillan

University of Georgia - Department of Finance ( email )

Terry College of Business
Athens, GA 30602-6253
United States

Jennifer Bethel (Contact Author)

Babson College ( email )

Babson Park, MA 02457-0310
United States
781-239-5797 (Phone)
781-239-5004 (Fax)

HOME PAGE: http://faculty.babson.edu/bethel/

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