Munich Personal RePEc Archive

An Analysis of Omitted Shareholder Proposals

Boylan, Robert and Cebula, Richard and Foley, Maggie and Liu, Xiaowei (2013): An Analysis of Omitted Shareholder Proposals. Published in: Journal of Finance and Accountancy , Vol. 17, No. 1 (13 June 2014): pp. 1-16.


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We intend to reveal the causes and the determinants of the omitted shareholder proposals. We find that individual investors are mostly likely to submit a proposal being excluded from the proxy ballot. Since individual investors are not so skillful as institutional investors, we summarize that shareholder proposals are excluded mainly due to sponsors’ lack of experience and knowledge, rather than as a self-serving vehicle for shareholder activists to gain bargaining power or to simply annoy management. We also find that most shareholder proposals are omitted because they deal with a matter relating to the company’s ordinary business operations.

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