Shareholder Proposals: Do They Drive Financial and ESG Performance?

42 Pages Posted: 23 Jan 2024

See all articles by Victoria Levasseur

Victoria Levasseur

affiliation not provided to SSRN

Paolo Mazza

IESEG School of Management; LEM CNRS 9221

Abstract

We examine the performance of publicly traded companies facing shareholder proposals. We use propensity score matching to identify peer companies to assess the impact of these proposals on performance. Our findings reveal that shareholder proposals are associated with increased nonfinancial performance, as evidenced by improved ESG scores. However, these proposals are associated with a negative impact on financial performance, and the extent of this correlation varies across different financial ratios. Furthermore, the study underscores notable differences in the effects of shareholder activism based on the geographical location of the company's headquarters, specifically between the United States and Europe.

Keywords: shareholder proposals, Financial performance, propensity score matching, Shareholder Activism, proxy fights

Suggested Citation

Levasseur, Victoria and Mazza, Paolo, Shareholder Proposals: Do They Drive Financial and ESG Performance?. Available at SSRN: https://ssrn.com/abstract=4703466 or http://dx.doi.org/10.2139/ssrn.4703466

Victoria Levasseur

affiliation not provided to SSRN ( email )

No Address Available

Paolo Mazza (Contact Author)

IESEG School of Management ( email )

3 Rue de la Digue
Office: A321
Lille, 59 59000
France

HOME PAGE: http://https://sites.google.com/site/paolomazzaphd/

LEM CNRS 9221 ( email )

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