Are Shareholder Proposals All Bark and No Bite? Evidence from Shareholder Resolutions to Rescind Poison Pills

1998 ◽  
Vol 33 (4) ◽  
pp. 499 ◽  
Author(s):  
John M. Bizjak ◽  
Christopher J. Marquette
Keyword(s):  
Shareholder Proposals ◽  
Poison Pills

scholarly journals The use of poison pills by US firms over the period 1997-2015: what has been their impact on shareholder value

2019 ◽  
Vol 18 (1) ◽  
pp. 98
Author(s):  
Duarte Pitta Ferraz ◽  
Ilídio Tomás Lopes ◽  
Simon Hitzelberger
Keyword(s):  
Shareholder Value ◽  
Poison Pills

The Costs and Benefits of Shareholder Democracy: Gadflies and Low-Cost Activism

2020 ◽  
Author(s):  
Nickolay Gantchev ◽  
Mariassunta Giannetti
Keyword(s):  
Low Cost ◽  
Shareholder Value ◽  
Career Concerns ◽  
Costs And Benefits ◽  
Cross Sectional ◽  
Shareholder Proposals ◽  
Active Individual ◽  
Shareholder Democracy ◽  
To Receive

Abstract We show that there is cross-sectional variation in the quality of shareholder proposals. On average, proposals submitted by the most active individual sponsors are less likely to receive majority support, but they occasionally pass if shareholders mistakenly support them and may even be implemented due to directors’ career concerns. While gadfly proposals destroy shareholder value if they pass, shareholder proposals on average are value enhancing in firms with more informed shareholders. We conclude that more informed voting could increase the benefits associated with shareholder proposals.

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