The elimination of broker voting in director elections
In 2009, the Securities and Exchange Commission (SEC) reformed shareholder voting by eliminating uninstructed broker voting in director elections. We use this reform as a quasi-natural experiment to assess the value of shareholder empowerment. Using different control groups and various cross-sectional tests, we find that the reform did not increase average equity values.
|Keywords||Board effectiveness, Director elections, Securities and Exchange Commission, Shareholder voting|
|Persistent URL||dx.doi.org/10.1016/j.frl.2017.02.001, hdl.handle.net/1765/97845|
|Journal||Finance Research Letters|
Akyol, A, Raff, K, & Verwijmeren, P. (2017). The elimination of broker voting in director elections. Finance Research Letters, 21, 34–39. doi:10.1016/j.frl.2017.02.001