Initiative on Quality Shareholders Highlights

Abstract

This Publication is part of The Quality Shareholder Initiative at the Center for Law, Economics and Finance (C-LEAF), at The George Washington University Law School, Prof. Lawrence A. Cunningham, Faculty Director.


Highlights of a research initiative that formalizes the longstanding intuition that the sorts of shareholders a company attracts influences its performance. Contains lists of the best shareholders in corporate America, measured by long holding periods and high portfolio concentration, and lists of the companies that attract such shareholders in high density. Notes and explains how such shareholders and companies have been prone to outperform rivals. Explores what quality shareholders look for in companies and a dozen of the practices and policies that, evidence shows, companies can use to attract quality shareholders. Includes bibliographic references and suggestions for further research.

Keywords: shareholders, quality shareholders, the best shareholders, annual meetings, shareholder letters, stewardship, engagement

JEL Classification: K22, G11, G23, G34