Arbeitspapier
Say pays!: Shareholder voice and firm performance
This paper estimates the effect of increasing shareholder voice in corporations through a new governance rule that provides shareholders with a regular vote on pay: Say on Pay. We apply a regression discontinuity design to Say on Pay shareholder proposals to deal with prior expectations and the endogeneity of internal governance rules. Adopting Say on Pay leads to large increases in market value (5.4 percent), firm profitability, and long-term performance. In contrast, we find small effects on the level and structure of pay. This suggests that Say on Pay operates as a regular confidence vote, increasing efficiency, and market value.
- Language
-
Englisch
- Bibliographic citation
-
Series: Upjohn Institute Working Paper ; No. 13-192
- Classification
-
Wirtschaft
Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance
Firm Behavior: Theory
Information and Market Efficiency; Event Studies; Insider Trading
- Subject
-
Agency Cost
Corporate Governance
Shareholder Meetings
Regression Discontinuity
Event Studies
- Event
-
Geistige Schöpfung
- (who)
-
Cuñat, Vicente
Gine, Mireia
Guadalupe, Maria
- Event
-
Veröffentlichung
- (who)
-
W.E. Upjohn Institute for Employment Research
- (where)
-
Kalamazoo, MI
- (when)
-
2013
- DOI
-
doi:10.17848/wp13-192
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Cuñat, Vicente
- Gine, Mireia
- Guadalupe, Maria
- W.E. Upjohn Institute for Employment Research
Time of origin
- 2013
Other Objects (12)
Say Pays! Shareholder Voice and Firm Performance
Shareholder Voice on Executive Pay: A Decade of Dutch Say on Pay
Shareholder voice and its opponents
Does Target Firm's Earnings Management Affect Shareholder's Gains? Evidence from China
CSR and firm risk: Is shareholder activism a double-edged sword?
Vermögensteilung: Maria Say, Wilhelm Say, Karl Say, Marie Say, Amalie Say und Johann Say
Say It. : The Performative Voice in the Dramatic Works of Samuel Beckett.
Vertrag: Ernst Say und Mina Say, Wilhelm Karl Say, Wilhelm Say, Maria Say, Emilie Say und Johann Friedrich Say über Liegenschaftsübergabe
The government as a large shareholder: Impact on firm value and corporate governance
Does Target Firm’s Earnings Management Affect Shareholder’s Gains? Evidence from China
The Effect of Online Protests and Firm Responses on Shareholder and Consumer Evaluation
Vertrag: Mina Say, Wilhelm Karl Say, Wilhelm Say, Maria Say, Emilie Say, Johann Friedrich Say und August Zimfer über Pacht
Say Pays! Shareholder Voice and Firm Performance
Shareholder Voice on Executive Pay: A Decade of Dutch Say on Pay
Shareholder voice and its opponents
Does Target Firm's Earnings Management Affect Shareholder's Gains? Evidence from China
CSR and firm risk: Is shareholder activism a double-edged sword?
Vermögensteilung: Maria Say, Wilhelm Say, Karl Say, Marie Say, Amalie Say und Johann Say
Say It. : The Performative Voice in the Dramatic Works of Samuel Beckett.
Vertrag: Ernst Say und Mina Say, Wilhelm Karl Say, Wilhelm Say, Maria Say, Emilie Say und Johann Friedrich Say über Liegenschaftsübergabe
The government as a large shareholder: Impact on firm value and corporate governance
Does Target Firm’s Earnings Management Affect Shareholder’s Gains? Evidence from China
The Effect of Online Protests and Firm Responses on Shareholder and Consumer Evaluation
Vertrag: Mina Say, Wilhelm Karl Say, Wilhelm Say, Maria Say, Emilie Say, Johann Friedrich Say und August Zimfer über Pacht
Say Pays! Shareholder Voice and Firm Performance
Shareholder Voice on Executive Pay: A Decade of Dutch Say on Pay
Shareholder voice and its opponents
Does Target Firm's Earnings Management Affect Shareholder's Gains? Evidence from China
CSR and firm risk: Is shareholder activism a double-edged sword?
Vermögensteilung: Maria Say, Wilhelm Say, Karl Say, Marie Say, Amalie Say und Johann Say
Say It. : The Performative Voice in the Dramatic Works of Samuel Beckett.
Vertrag: Ernst Say und Mina Say, Wilhelm Karl Say, Wilhelm Say, Maria Say, Emilie Say und Johann Friedrich Say über Liegenschaftsübergabe
The government as a large shareholder: Impact on firm value and corporate governance
Does Target Firm’s Earnings Management Affect Shareholder’s Gains? Evidence from China
The Effect of Online Protests and Firm Responses on Shareholder and Consumer Evaluation