Proxy Advisors and Shareholder Dissent: A Cross-Country Comparative Study
Journal
Journal of Management
ISSN
0149-2063
Type
journal article
Date Issued
2018
Author(s)
Abstract (De)
Proxy advisors are information intermediaries that enable shareholders to exercise their voting
rights. While proxy advisors’ influence is documented in market-based corporate governance
systems, we know little about the corporate governance role of proxy advice in relationshipbased
governance systems. Drawing on agency theory and the comparative corporate governance
literature, we theorize that shareholders are sensitive to the costs and benefits of
monitoring by considering internal monitoring capabilities. We also theorize that relative to
market-based corporate governance systems, proxy advice is both less influential and has lower
predictive quality in relationship-based governance systems. We test our multilevel model using
13,497 voting results from 613 firms in 16 Western European countries and generally find support
for our predictions.
rights. While proxy advisors’ influence is documented in market-based corporate governance
systems, we know little about the corporate governance role of proxy advice in relationshipbased
governance systems. Drawing on agency theory and the comparative corporate governance
literature, we theorize that shareholders are sensitive to the costs and benefits of
monitoring by considering internal monitoring capabilities. We also theorize that relative to
market-based corporate governance systems, proxy advice is both less influential and has lower
predictive quality in relationship-based governance systems. We test our multilevel model using
13,497 voting results from 613 firms in 16 Western European countries and generally find support
for our predictions.
Language
English
HSG Classification
contribution to scientific community
HSG Profile Area
Global Center for Entrepreneurship + Innovation
Refereed
Yes
Publisher
Sage Publ.
Volume
44
Number
8
Start page
3364
End page
3394
Subject(s)
Eprints ID
255880
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Name
Saurwald et al_2018.pdf
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Format
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