80 Pages Posted: 14 Feb 2018 Last revised: 1 May 2020
Date Written: September 3, 2019
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 adviser ISS makes voting recommendations that place it center, to the left of most mutual funds. A second dimension reflects a more traditional governance view, with management disciplinarian investors, the proxy adviser Glass-Lewis among them, pitted against more management friendly ones.
Keywords: Institutional Investors, Proxy Voting, Ideology, Spatial Model
JEL Classification: G23, G30, D72, C80
Suggested Citation: Suggested Citation