Does Shareholder Proxy Access Improve Firm Value? Evidence from the Business Roundtable Challenge

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Does Shareholder Proxy Access Improve Firm Value? Evidence from the Business Roundtable Challenge

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dc.contributor.author Becker, Bo
dc.contributor.author Bergstresser, Daniel
dc.contributor.author Subramanian, Guhan
dc.date.accessioned 2012-11-21T16:25:40Z
dc.date.issued 2012-11-21
dc.identifier.citation Becker, Bo, Guhan Subramanian, and Daniel B. Bergstresser. "Does Shareholder Proxy Access Improve Firm Value? Evidence from the Business Roundtable Challenge." Journal of Law & Economics (forthcoming). en_US
dc.identifier.issn 0022-2186 en_US
dc.identifier.uri http://nrs.harvard.edu/urn-3:HUL.InstRepos:9932210
dc.description.abstract We use the Business Roundtable’s challenge to the SEC’s 2010 proxy access rule as a natural experiment to measure the value of shareholder proxy access. We find that firms that would have been most vulnerable to proxy access, as measured by institutional ownership and activist institutional ownership in particular, lost value on October 4, 2010, when the SEC unexpectedly announced that it would delay implementation of the Rule in response to the Business Roundtable challenge. We also examine intra-day returns and find that the value loss occurred just after the SEC’s announcement on October 4. We find similar results on July 22, 2011, when the D.C. Circuit ruled in favor of the Business Roundtable. These findings are consistent with the view that financial markets placed a positive value on shareholder access, as implemented in the SEC’s 2010 Rule. en_US
dc.language.iso en_US en_US
dc.relation.hasversion http://ideas.repec.org/s/ucp/jlawec.html en_US
dash.license OAP
dc.title Does Shareholder Proxy Access Improve Firm Value? Evidence from the Business Roundtable Challenge en_US
dc.type Journal Article en_US
dc.description.version Author's Original en_US
dc.relation.journal Journal of Law & Economics en_US
dash.depositing.author Becker, Bo
dc.date.available 2012-11-21T16:25:40Z

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