The intra-industry effects of proxy contests

Fang Chen (), Jian Huang () and Han Yu ()
Additional contact information
Fang Chen: University of New Haven
Jian Huang: Towson University
Han Yu: Southern Connecticut State University

Journal of Economics and Finance, 2020, vol. 44, issue 2, No 6, 347 pages

Abstract: Abstract In this study, we examine the intra-industry effect of proxy contests. Proxy contests convey the information of common industrial risks or expected competitive relationship change. We find significant negative abnormal returns in the group of competitors of target firms with negative abnormal returns, and such negative abnormal returns become larger for similar-size competitors. In contrast, there are no significant abnormal returns for competitors of target firms with positive abnormal returns. These findings are consistent with the information-based theory but not the competitive theory.

Keywords: Proxy contest; Intra-industry effect; Information-based effect; Competitive effect (search for similar items in EconPapers)
JEL-codes: G14 G34 (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (6)

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DOI: 10.1007/s12197-019-09492-6

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