Journal article
Are Mutual Funds Active Voters?
The Review of financial studies, v 28(2), pp 446-485
01 Feb 2015
Abstract
Mutual funds vary greatly in their reliance on proxy advisory recommendations. Over 25% of funds rely almost entirely on Institutional Shareholder Services (ISS) recommendations, while other funds place little weight on them. Funds with higher benefits and lower costs of researching the items up for vote are less likely to rely on ISS. These actively voting funds are less likely to vote in a "one-size-fits-all" manner, and they earn higher alphas, consistent with benefits from this allocation of resources. For the underlying firms, the presence of actively voting funds mitigates the influence of ISS and helps sway shareholder votes toward value-maximizing outcomes.
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Details
- Title
- Are Mutual Funds Active Voters?
- Creators
- Peter Iliev - Pennsylvania State UniversityMichelle Lowry - Drexel University
- Publication Details
- The Review of financial studies, v 28(2), pp 446-485
- Publisher
- Oxford Univ Press
- Number of pages
- 40
- Grant note
- Smeal Research Grants Program
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:000350115500004
- Scopus ID
- 2-s2.0-84924606973
- Other Identifier
- 991019167885404721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics