Institutional Debtholder Governance

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 2021
Volume: 56
Issue: 6
Pages: 2103-2135

Authors (3)

Keswani, Aneel (not in RePEc) Tran, Anh (City University) Volpin, Paolo (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

Using data on the universe of U.S. based mutual funds, we find that two out of five fund families hold corporate bonds of firms in which they also own an equity stake. We show that the greater the fraction of debt a fund family holds in a given firm, the greater its propensity to vote in line with the interests of firm debtholders at shareholder meetings, even when against Institutional Shareholder Services (ISS) recommendation. Voting has direct policy consequences as firms that receive more votes in favor of creditors make corporate decisions more in line with the interests of debtholders.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:56:y:2021:i:6:p:2103-2135_8
Journal Field
Finance
Author Count
3
Added to Database
2026-01-29