Information and Voting Power in the Proxy Process
We document shareholder support for wealth-decreasing changes in corporate governance in the form of antitakeover charter amendments. The enactment of these amendments is shown to be related to ownership structure. This gives rise to a sample selection bias that contaminates traditional event-study results and explains the discrepancy between our findings and those reported in previous studies. We also provide evidence that strategic behavior by managers plays a role in the adoption of these amendments.
Bhagat, Sanjai, and Richard Jefferis Jr. 1990. “Information and Voting Power in the Proxy Process” Federal Reserve Bank of Cleveland, Working Paper No. 90-11. https://doi.org/10.26509/frbc-wp-199011