Mutual Fund Board Connections and Proxy Voting (Summary)
CFA Institute Journal Review summarizes "Mutual Fund Board Connections and Proxy Voting," by Paul Calluzzo and Simi Kedia, published in the Journal of Financial Economics, December 2019.
Overview
The authors show that when mutual funds are connected to firms by executives and directors, this dynamic results in information advantages and different voting behavior. Also, the size of the stake in the firm and the location of the fund and the firm are factors that positively influence how the fund and firm are connected.
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