Volume 12, Number 1, June 2017
| The Correlation between Corporate Re-elections and Abnormal Stock Returns under the System of Electronic Voting |
Abstract
This study examines the correlation between corporate re-elections and abnormal stock returns under the system of electronic voting (e-voting). The addition of e-voting systems causes an increase in acquisition costs and generates an interfering effect against proxies, which consequently lessens the possibility of abnormal returns. Findings show that when the scope of the mandatory e-voting system is announced, applicable companies exhibit abnormal stock returns. Subsequently, the e-voting system imposes a positive influence on these companies. Further analysis show that during the general shareholder meetings (GSM) period, companies that adopt e-voting for re-electing directors have evidently lower abnormal returns than those without e-voting.
Keywords: E-voting, Corporate Re-elections, Voting Rights, Abnormal Returns
JEL Classification: D72, L82