scroll to top
Loading icon
0

Mobile Menu

Header Layout

EBSCO Auth Banner

Let's find your institution. Click here.

Page title

When Shareholders Disagree: Trading after Shareholder Meetings.

  • Academic Journal
  • Li, Sophia Zhengzi1 (AUTHOR)
    Maug, Ernst2 (AUTHOR) maug@uni-mannheim.de
    Schwartz-Ziv, Miriam3 (AUTHOR)
  • Review of Financial Studies. Apr2022, Vol. 35 Issue 4, p1813-1867. 55p.
  • This paper analyzes how trading after shareholder meetings changes the composition of the shareholder base. Analyzing daily trades, we find that mutual funds reduce their holdings if their votes are opposed to the voting outcome. Trading volume is high even when stock prices do not change, peaks on the meeting date, and remains high up to four weeks after shareholder meetings. The results support models based on differences of opinion that predict that shareholders' beliefs may diverge more after observing voting outcomes. Hence, trading after meetings creates a more homogeneous shareholder base, which has important implications for corporate governance. [ABSTRACT FROM AUTHOR]
Additional Information
Copyright of Review of Financial Studies is the property of Oxford University Press / USA and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)

banner_970x250 (970x250)

sponsored