Our speaker will be Markus Parlasca(WU Vienna).

He will give a talk on "Voting and Trading on Proxy Advice" (joint with Paul Voss).

Abstract: This paper studies how proxy advice affects corporate decision-making when shareholders can vote and trade. Because proxy advice correlates shareholders’ votes, it is informative about the vote outcome. We show that the predictability of the vote outcome induces shareholders with conflicting information vis-à-vis the proxy advice to sell their shares – precisely when their vote would be most valuable for information aggregation. We find that proxy advice can thus reduce firm value and more precise proxy advice may not improve corporate decision making. Our results give rise to new empirical predictions and have implications for regulation.

The talk will take place on May 16, 2024 at 01:00 pm in room TC.5.15.