Details

Autor(en) / Beteiligte

• Jarrow, Robert A
• Leach, J Chris

Titel

The Relevance of Fiduciary Conflict-of-Interests in Control

Ist Teil von

• Journal of financial and quantitative analysis, 1991-12, Vol.26 (4), p.533

Ort / Verlag

Seattle: Cambridge University Press

Erscheinungsjahr

1991

Quelle

Business Source Ultimate【Trial: -2024/12/31】【Remote access available】

Beschreibungen/Notizen

• The role of fiduciaries with conflicting interests has received considerable attention recently. An analysis is presented of the role of a fiduciary casting votes under conflicting interests in proxy contests that seek to control the corporation and those waged solely for the purpose of deciding an issue. Comparisons are derived across types of contests, yielding implications concerning differences in success probabilities and resolution effects for the 2 types of contests. Ceteris paribus, the conflicting interests decrease the likelihood of the success for the opposition in issue contests relative to control contests. By considering the dynamics of a proxy contest, it is shown that stock price swings from announcement to successful resolution are larger for issue contests than for control contests. The empirical verification (refutation) of such effects would provide insight regarding the (ir)relevance of fiduciary conflict of interests in proxy contests.