How do passive funds act as active owners? Evidence from mutual fund voting records

Hshieh, Shenje; Li, Jiasun; Tang, Yingcong

doi:10.1016/j.jcorpfin.2020.101692

Cited by 21 publications

(6 citation statements)

References 30 publications

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“…This could occur through voting, engagement or sharing a director (Antón et al, 2020;Azar, 2021). Hshieh et al (2021) extends this to show that the influence of institutional investors can operate through a "behind the scenes" channel. This includes influence on which agenda items appear on proxy statements.…”

Section: Common Ownership Hypothesismentioning

confidence: 82%

“…Under the common ownership hypothesis, Vanguard and BlackRock would consider the profits of BP and Puma jointly, reducing their incentive to compete. While the shock to ownership of Puma in 2020 only gives a minority shareholding, institutional investors can still exercise significant power relative to retail shareholders (Hshieh et al, 2021).…”

Section: Acquisitionmentioning

confidence: 99%

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Does Common Ownership Cause Higher Prices? Evidence from Retail Gasoline Markets

Sladden¹

2022

SSRN Journal

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Section: Common Ownership Hypothesismentioning

confidence: 82%

Section: Acquisitionmentioning

confidence: 99%

Does Common Ownership Cause Higher Prices? Evidence from Retail Gasoline Markets

Sladden¹

2022

SSRN Journal

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“…The paper [6] considers the issues of pricing taking into account several stock market anomalies, examines the parameters of the indicators of mutual investment funds that affect pricing. Collectively, mutual funds are shown to have more weight than overvalued stocks and less weight than undervalued stocks compared to the passive benchmark.…”

Section: Neural Network In Evaluating the Effectiveness Of A Mutual F...mentioning

confidence: 99%

Estimation of the Efficiency of the Investment Fund

Dadyan¹

2021

Preprint

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In this article, a search for a calculation method and an analysis of performance indicators of mutual investment funds is carried out. Many factors can influence the return on investments in portfolio investments, which makes the choice of the fund incredibly difficult. However, in addition to the fact that it is difficult to determine which indicators should be given more attention and which should be omitted, it is not so easy to get these data. Some of them are publicly available on the Internet, while others can only be found in trading systems that are not accessible to people outside of this area. The article proves that a well-trained neural network can easily find existing patterns between risk and expected return on investment. It is a well-trained neural network that provides the ability to use the "what-if" function to justify your choice on real factors, as well as the ability to download available data and calculate the estimated income and its changes. This makes it much easier to choose a Fund, especially for inexperienced investors. The article also presents the results of a study of the dependence of estimated income on correlation, standard deviation, and volatility using a trained neural network. According to the theory, higher values of these three factors correspond to a higher amount of income. The obtained graphs of the calculated income dependence on correlation, standard deviation, and volatility confirmed the correctness of the neural network training and compliance with the relations described in the theory. The paper presents graphs of the dependence of the estimated income on the beta and alpha coefficients. The higher the beta and alpha indicators, the higher the expected return on investment. This corresponds to the dependency accepted in the model. When the values of the beta and alpha coefficients increase, the income also increases, which is completely consistent with the theory.

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“…Moreover, another study found that index funds are no more likely than active funds to vote for management or against governance reforms, with the exception that (only at fund families smaller than the Big Three) index funds are more likely to favor the renewal of poison pills. 366 Bebchuk and Hirst stress that the Big Three index funds fail to submit their own shareholder proposals. 367 However, a recent empirical study found that index funds often exert influence not by how they vote, but through behind-thescenes influence on what proxy items get on the ballot, so that high index fund ownership increases the likelihood of many corporate governance proposals being made.…”

Section: Empirical Evidence Shows That Index Fund Families Do Exert E...mentioning

confidence: 99%

“…In fact, the empirical evidence indicates that higher index fund ownership is associated with a higher percentage of independent directors being nominated. 375 This shows that index funds must be influencing which nominations get made, despite the lack of formal nominations or disclosed discussions.…”

Section: Empirical Evidence Shows That Index Fund Families Do Exert E...mentioning

confidence: 99%

The Causal Mechanisms of Horizontal Shareholding

Elhauge¹

2019

SSRN Journal

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How do passive funds act as active owners? Evidence from mutual fund voting records

Cited by 21 publications

References 30 publications

Does Common Ownership Cause Higher Prices? Evidence from Retail Gasoline Markets

Does Common Ownership Cause Higher Prices? Evidence from Retail Gasoline Markets

Estimation of the Efficiency of the Investment Fund

The Causal Mechanisms of Horizontal Shareholding

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