Author : Ryan Bubb
Publisher :
ISBN 13 :
Total Pages : 69 pages
Book Rating : 4.:/5 (13 download)
Book Synopsis The Party Structure of Mutual Funds by : Ryan Bubb
Download or read book The Party Structure of Mutual Funds written by Ryan Bubb and published by . This book was released on 2019 with total page 69 pages. Available in PDF, EPUB and Kindle. Book excerpt: We investigate the structure of mutual funds' corporate governance preferences as revealed by how they vote their shares in portfolio companies. We apply standard unsupervised learning tools from the machine learning literature to analyze a comprehensive dataset of mutual funds' votes and find that a parsimonious two-dimensional model can explain the bulk of mutual fund voting. The two dimensions represent competing visions of shareholder rights and modes of shareholder engagement with management. Model-based cluster analysis shows that mutual funds are organized into three 'parties' -- the Traditional Governance Party, the Shareholder Intervention Party, and the Shareholder Veto Party -- that follow distinctive philosophies of corporate governance and shareholders' role. Our preference measures for mutual funds generate a range of insights about the broader system of corporate governance.