Empowering small shareholders: A comparison of three instruments

Tsjalle van der Burg*, Aloys Prinz

*Corresponding author for this work

    Research output: Contribution to journalArticleAcademicpeer-review

    10 Citations (Scopus)
    4 Downloads (Pure)

    Abstract

    In this paper, three instruments for empowering small, individual shareholders are compared: proxy investing, proxy voting institutions and infomediaries. The working of each instrument is discussed with special emphasis on the problems of information gathering and coalition forming. Subsequently, each instrument is analysed with respect to appropriateness, costs and effectiveness. No instrument turns out to be clearly superior to the others. Although proxy investing is the most popular concept among small (individual) shareholders at present, the long-run potential of proxy voting institutions and infomediaries may be higher. Since more research could be helpful to establish which of these two options is best, both non-profit organisations and governments could in the meantime stimulate experiments with proxy voting institutions and infomediaries for small shareholders.
    Original languageEnglish
    Pages (from-to)406-417
    Number of pages12
    JournalCorporate governance (Oxford)
    Volume14
    Issue number5
    DOIs
    Publication statusPublished - Sept 2006

    Keywords

    • proxy voting institutions
    • small shareholders
    • proxy investing
    • infomediaries
    • Corporate Governance
    • 2023 OA procedure

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