1. Can online annual general meetings increase shareholders' participation in corporate governance?
- Author
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Gao, Huasheng, Huang, Jun, and Zhang, Tianshu
- Subjects
Corporate governance -- Management ,Shareholder activism -- Management ,Stockholder meetings -- Influence ,Company business management ,Banking, finance and accounting industries ,Business - Abstract
We find that annual shareholder meetings conducted online can significantly increase the participation of shareholders, especially minority shareholders. This finding is more evident when the cost of physically attending the annual meeting is higher and when the firm's ownership is more dispersed. We further document significant positive stock returns when firms initiate annual online meetings. We also find that such online meetings help improve corporate governance. Overall, we provide evidence that online shareholder meetings provide shareholders a cost-effective way to participate in governance issues. KEYWORDS online annual general meetings, shareholder participation, corporate governance, 1 INTRODUCTION Annual general meetings (AGMs) often serve as an opportunity for shareholders to receive updates on company developments, ask management and directors questions, consider corporate proposals, and review the [...]
- Published
- 2020
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