(Black)Rock the vote: Index funds and opposition to management

Joseph D. Farizo

Journal of Corporate Finance, 2022, vol. 76, issue C

Abstract: I show index funds are more likely to oppose management on contentious management sponsored proposals at firms held only by their family's index funds than on proposals at firms co-held by their family's active funds. Additionally, shareholder proposals garner a greater level of support by index funds when the firm's shares are not simultaneously held by a fund's same-family active funds. Consistent with “locked-in” motives to monitor, these results imply index funds participate as more engaged voters when same-family active funds avoid holding positions in a firm.

Keywords: Index funds; Governance; Proxy voting (search for similar items in EconPapers)
JEL-codes: G23 G30 G34 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:76:y:2022:i:c:s0929119922000906

DOI: 10.1016/j.jcorpfin.2022.102247

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