Investor Ideology

Patrick Bolton, Tao Li, Enrichetta Ravina, Howard Rosenthal

Series number :

Serial Number:

557/2018

Date posted :

April 04 2018

Last revised :

July 08 2019

SSRN

Keywords

institutional investors •
proxy voting •
Ideology •
Spatial Model

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.

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