Trading and Shareholder Democracy

IF 7.6 1区 经济学 Q1 BUSINESS, FINANCE Journal of Finance Pub Date : 2023-11-03 DOI:10.1111/jofi.13289
DORON LEVIT, NADYA MALENKO, ERNST MAUG
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Abstract

We study shareholder voting in a model in which trading affects the composition of the shareholder base. Trading and voting are complementary, which gives rise to self-fulfilling expectations about proposal acceptance and multiple equilibria. Prices and shareholder welfare can move in opposite directions, so the former may be an invalid proxy for the latter. Relaxing trading frictions can reduce welfare because it allows extreme shareholders to gain more weight in voting. Delegating decision-making to the board can help overcome collective action problems at the voting stage. We also analyze the role of index investors and social concerns of shareholders.

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贸易与股东民主
我们在一个交易影响股东基础组成的模型中研究股东投票。交易和投票是互补的,这产生了对提案接受和多重均衡的自我实现预期。价格和股东福利可能会朝着相反的方向发展,因此前者可能是后者的无效代表。缓和交易摩擦可以降低福利,因为这可以让极端股东在投票中获得更多的权重。将决策权交给董事会有助于克服投票阶段的集体行动问题。我们还分析了指数投资者的作用和股东的社会关切。
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来源期刊
Journal of Finance
Journal of Finance Multiple-
CiteScore
12.90
自引率
2.50%
发文量
88
期刊介绍: The Journal of Finance is a renowned publication that disseminates cutting-edge research across all major fields of financial inquiry. Widely regarded as the most cited academic journal in finance, each issue reaches over 8,000 academics, finance professionals, libraries, government entities, and financial institutions worldwide. Published bi-monthly, the journal serves as the official publication of The American Finance Association, the premier academic organization dedicated to advancing knowledge and understanding in financial economics. Join us in exploring the forefront of financial research and scholarship.
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