AccessMyLibrary provides FREE access to over 30 million articles from top publications available through your library.
Create a link to this page
Copy and paste this link tag into your Web page or blog:
STANFORD, Calif. -- How mutual funds operate in electing corporate board directors for firms in which they are invested was a topic once shrouded in confidentiality and mystery. But the 2003 Securities and Exchange Commission mandate that mutual funds disclose their proxy voting opened up a world of information on the ins and outs of voting behavior. Stanford Graduate School of Business faculty member Michael Ostrovsky has combed through several years of data to discover that mutual funds vote in ways that protect them from negative reprisals.
Some mutual funds, he found, tend to be "management friendly" -- consistently approving slates of directors proposed by corporate management. Others, however, are more inclined to register opposition. Even more interesting, when fund managers or proxy oversight committees casting the ...