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(Black)Rock the vote: Index funds and opposition to management

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  • Farizo, Joseph D.

Abstract

I show index funds are more likely to oppose management on contentious management sponsored proposals at firms held only by their family's index funds than on proposals at firms co-held by their family's active funds. Additionally, shareholder proposals garner a greater level of support by index funds when the firm's shares are not simultaneously held by a fund's same-family active funds. Consistent with “locked-in” motives to monitor, these results imply index funds participate as more engaged voters when same-family active funds avoid holding positions in a firm.

Suggested Citation

  • Farizo, Joseph D., 2022. "(Black)Rock the vote: Index funds and opposition to management," Journal of Corporate Finance, Elsevier, vol. 76(C).
    • Handle: RePEc:eee:corfin:v:76:y:2022:i:c:s0929119922000906
    DOI: 10.1016/j.jcorpfin.2022.102247
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    References listed on IDEAS

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    More about this item

    Keywords

    Index funds; Governance; Proxy voting;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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