Details

Autor(en) / Beteiligte

• Smith, Erin E

Titel

Topcis in Corporate Governance

Ort / Verlag

ProQuest Dissertations & Theses

Erscheinungsjahr

2014

Quelle

ProQuest Dissertations & Theses A&I

Beschreibungen/Notizen

• When a share is lent, the lending institution often neglects to match the loan to a particular underlying share. The institution will then solicit the owner of the lent share for votes on corporate proposals, despite the owner's loss of voting rights. This "over-voting" introduces a pro-management bias for amendments requiring approval from a majority of shares outstanding I develop an identification strategy to estimate the frequency of over-voting and find that it accounts for approximately four percent of votes cast. Additionally, company meetings most susceptible to over-voting bias have risk-adjusted returns that are decreasing with the portion of shares on loan.