Journal article
Investors' Attention to Corporate Governance
The Review of financial studies, v 34(12), pp 5581-5628
01 Dec 2021
Abstract
Using unique data on investor views of EDGAR company filings, we document that many investors engage in governance research. However, investors' monitoring is disproportionately focused on large firms and firms with meetings outside the busy spring proxy season. Using an instrumental variables approach that isolates the drop in governance attention during the busy proxy season, we show that governance research is related to investors' monitoring of firms, through voice and exit. Moreover, governance research disciplines management, who, as a result, reduce investments and increase payouts. The concentration of attention results in joint monitoring of a relatively small subset of firms.
Metrics
Details
- Title
- Investors' Attention to Corporate Governance
- Creators
- Peter Iliev - Pennsylvania State UniversityJonathan Kalodimos - Oregon State UniversityMichelle Lowry - Drexel University
- Publication Details
- The Review of financial studies, v 34(12), pp 5581-5628
- Publisher
- Oxford Univ Press
- Number of pages
- 48
- Grant note
- Smeal Research Grant Program Gupta Governance Institute
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Finance
- Web of Science ID
- WOS:000728442300001
- Scopus ID
- 2-s2.0-85121249886
- Other Identifier
- 991019167973504721
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Business, Finance
- Economics