Broccardo, Eleonora; Hart, Oliver D.; Zingales, Luigi - 2021
We study the relative effectiveness of exit (divestment and boycott) and voice (engagement) strategies in promoting … responsible, voice achieves the socially desirable outcome, while exit does not. If the majority of investors are purely selfish …, exit is a more effective strategy, but neither strategy generally achieves the first best. We also show that individual …