Investor Ideology

Investor Ideology

Patrick Bolton, Tao Li, Enrichetta Ravina, Howard Rosenthal

Series number :

Serial Number: 

Date posted :

July 10 2018

Last revised :

April 04 2018
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  • institutional investors • 
  • proxy voting • 
  • Ideal Points • 
  • Spatial Model of Voting

This paper estimates a spatial model of proxy voting, the W-NOMINATE method for scaling legislatures, and maps institutional investors onto a left-right dimension based on their votes for fiscal year 2012. The far-left are socially responsible and the far-right are “money-conscious” investors. Significant ideological differences reflect an absence of shareholder unanimity.

The proxy adviser ISS, similar to a political leader makes voting recommendations that place it center-left; to the left of most mutual funds. 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.


Real name: 
Tao Li
University of Warwick
Real name:
Enrichetta Ravina
Kellogg School of Management
Real name:
Howard Rosenthal