Shareholder proposals are a common form of shareholder activism. Voting for shareholder proposals, however, is nonbinding since management has the authority to reject the proposal even if it received majority support from shareholders. We analyze whether nonbinding voting is an effective...

This paper identifies eight reasons why it is rational not to trust large complex Anglo corporations and how these reasons could be removed. Two reasons are that directors are overloaded with information but also lack information independent of management to evaluate management and the business....

This paper explains why so called quot;world best practicesquot; in corporate governance developed in the US and the UK represent the problem not the solution for the crisis in capitalism that has reduced share values by trillions of dollars. One reason is that a unitary board has absolute power...

This paper examines the nature, incidence, and consequences of boardroom disputes. Using a novel, hand-collected dataset of internal disputes in publicly traded U.S. companies over 1995-2006 that come to light upon the occurrence of director resignations, we find that such conflicts typically...

The paper identifies three necessary conditions for investors and other stakeholders to trust companies and how such conditions might be met. First, directors require systemic processes for obtaining information independently of management on the strengths, weaknesses, opportunities and threats...

We investigate the internal workings of U.S. corporate governance with a hand-collected dataset of director resignations that are related to power struggles within the board. About two-thirds of the conflicts arise because of how board members interact in carrying out their duties, while most of...

The paper presents the actual ownership structure of public companies in Bulgaria on the basis of a survey of 104 of the companies traded on the Bulgarian Stock Exchange. It discusses as well the problems of disclosure of ownership information, focusing on the transposition of the EC Large...

Corporate Governance relates to mechanisms through which providers of resources to the firm get their share of resources in return. Adequate governance practices help develop capital markets and assist market forces in attaining efficient contracts. Convincing evidence exists that well developed...

We argue that the choice of corporate governance by a firm affects and is affected by the choice of governance by other firms. Firms with weaker governance give higher payoffs to their management to incentivize them. This forces firms with good governance to also pay their management more than...