Investors' Attention to Corporate Governance

Peter Iliev, Jonathan Kalodimos, Michelle Lowry

Research output: Contribution to journalArticlepeer-review

23 Scopus citations


Using unique data on investor views of EDGAR company filings, we document that many investors engage in governance research. However, investors' monitoring is disproportionately focused on large firms and firms with meetings outside the busy spring proxy season. Using an instrumental variables approach that isolates the drop in governance attention during the busy proxy season, we show that governance research is related to investors' monitoring of firms, through voice and exit. Moreover, governance research disciplines management, who, as a result, reduce investments and increase payouts. The concentration of attention results in joint monitoring of a relatively small subset of firms.

Original languageEnglish (US)
Pages (from-to)5581-5628
Number of pages48
JournalReview of Financial Studies
Issue number12
StatePublished - Dec 1 2021

All Science Journal Classification (ASJC) codes

  • Accounting
  • Finance
  • Economics and Econometrics


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