Firm Performance by Proxy Voting of Equity Funds
This paper examines whether equity funds exercise the shareholders rights actively on behalf of investors as the
fiduciaries. Using a unique dataset including 349,242 proxy voting events by equity fundsin Korean stock market, I provide
the descriptive statistics of voting results such as pass, fail, not disclosed, or withdrawn by management and shareholders
proposals. This paper also investigates how to affect firm performance depending on the extent of indirectly exercise proxy
voting by equity funds. In addition, this paper analyzes the effect of business ties between asset management companies and
related firms, especially within the chaebol.
Key words - proxy voting, equity funds, firm performance, corporate governance