The Role of Advisory Services in Proxy Voting

Cindy R. Alexander, Mark A. Chen, Duane J. Seppi and Chester S. Spatt

No 15143, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper studies the information content and consequences of third-party voting advice issued during proxy contests. We document significant abnormal stock returns around proxy vote recommendations and develop an estimation procedure for disentangling stock price effects due to changes in outcome probabilities from those due to changes in outcome-contingent valuations. We find that voting advice is a good predictor of contest outcomes and that vote recommendations appear to certify the extent to which dissidents can add value. Thus, proxy advice seems to play a dual informational role in financial markets.

JEL-codes: G20 G24 G30 G34 (search for similar items in EconPapers)
Date: 2009-07
New Economics Papers: this item is included in nep-cdm and nep-pol
Note: AP CF
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

Published as “Interim News and the Role of Proxy Voting Advice,” December 2010 (with C . Alexander, M . Chen and D . Seppi), Revi ew of Financial Studies , 23, 4419 - 4454.

Downloads: (external link)
http://www.nber.org/papers/w15143.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:15143

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w15143

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().