Journal of Financial Economics Vol. 137 No. 2 2020

Investor ideology

Patrick Bolton¹; Tao Li²; Enrichetta Ravina³; Howard L. Rosenthal⁴

¹ Imperial College London · ² University of Florida · ³ Northwestern University · ⁴ New York University

Abstract

We estimate institutional investor preferences from proxy voting records. The W-NOMINATE method maps investors onto a left-right dimension based on votes for fiscal year 2012. Public pension funds and other investors on the left support a more social and environment-friendly orientation of the firm and fewer executive compensation proposals. “Money-conscious” investors appear on the right. The proxy advisor ISS makes voting recommendations that place it center, to the left of most large mutual funds. A second dimension reflects a more traditional governance view, with management-disciplinarian investors, the proxy advisor Glass Lewis among them, pitted against more management-friendly ones.

DOI

10.1016/j.jfineco.2020.03.004

Volume

137

Issue

2

Pages

320-352

Language

en

Sources

crossref bibtex:phds-export.bib openalex

Cite

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