The Role of Proxy Advisory Firms in Improving Corporate Governance: Evidence from India
Due to various economic and regulatory reasons, large institutional investors hire proxy advisory firms (PAF) to give recommendations on various decisions related to a company. PAFs are information intermediaries between corporate board/management and investors. They advise investors, principally institutional investors, on how to vote on resolutions placed by companies for shareholder decisions. These decisions include say-on-pay, elections of directors, appointment of auditors, and mergers and acquisitions.
The Role of Proxy Advisory Firms in Improving Corporate Governance: Evidence from India
Project Team: | R. Narayanaswamy |
Sponsor: | IIM Bangalore |
Project Status: | Ongoing (Initiated in March 2019) |
Area: | Finance & Accounting |
Abstract: | Due to various economic and regulatory reasons, large institutional investors hire proxy advisory firms (PAF) to give recommendations on various decisions related to a company. PAFs are information intermediaries between corporate board/management and investors. They advise investors, principally institutional investors, on how to vote on resolutions placed by companies for shareholder decisions. These decisions include say-on-pay, elections of directors, appointment of auditors, and mergers and acquisitions. |