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Do shareholders vote strategically? Voting behavior, proposals screening, and majority rules

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  • Maug, Ernst
  • Rydqvist, Kristian

Abstract

We study shareholder voting on management proposals. We build on a simple model of strategic voting, provide structural estimates of its parameters, and derive testable implications. The evidence suggests that voting is strategic in the sense that shareholders take into account the information of other shareholders when making their voting decisions. We conclude that strategic voting prevents incorrect rejections of management proposals.

Suggested Citation

  • Maug, Ernst & Rydqvist, Kristian, 2007. "Do shareholders vote strategically? Voting behavior, proposals screening, and majority rules," Papers 07-35, Sonderforschungsbreich 504.
    • Handle: RePEc:mnh:spaper:2533
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    File URL: https://madoc.bib.uni-mannheim.de/2533/1/dp07_35.pdf
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    shareholder meeting ; proposal screening ; strategic voting ; supermajority rule;
    All these keywords.

    JEL classification:

    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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