Investor ideology

A-Tier
Journal: Journal of Financial Economics
Year: 2020
Volume: 137
Issue: 2
Pages: 320-352

Authors (4)

Bolton, Patrick (not in RePEc) Li, Tao (not in RePEc) Ravina, Enrichetta (Federal Reserve Bank of Chicag...) Rosenthal, Howard (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 4 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We estimate institutional investor preferences from proxy voting records. The W-NOMINATE method maps investors onto a left-right dimension based on votes for fiscal year 2012. Public pension funds and other investors on the left support a more social and environment-friendly orientation of the firm and fewer executive compensation proposals. “Money-conscious” investors appear on the right. The proxy advisor ISS makes voting recommendations that place it center, to the left of most large mutual funds. A second dimension reflects a more traditional governance view, with management-disciplinarian investors, the proxy advisor Glass Lewis among them, pitted against more management-friendly ones.

Technical Details

RePEc Handle
repec:eee:jfinec:v:137:y:2020:i:2:p:320-352
Journal Field
Finance
Author Count
4
Added to Database
2026-01-29