The Role of Advisory Services in Proxy Voting / Cindy R. Alexander, Mark A. Chen, Duane J. Seppi, Chester S. Spatt.

Format:

Book

Author/Creator:

Alexander, Cindy R.

Contributor:

National Bureau of Economic Research.

Chen, Mark A.

Seppi, Duane J.

Spatt, Chester S.

Series:

Working Paper Series (National Bureau of Economic Research) no. w15143.

NBER working paper series no. w15143

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2009.

Summary:

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.

Notes:

Print version record

July 2009.