Finance Research Seminar: "Public Sentiment Decomposition and Shareholder Actions"
About this seminar
Explore how public sentiment impacts shareholder proposals, with findings showing links to CEO and board turnover.
Speaker
Our speaker is Professor Reena Aggarwal, Robert E. McDonough Professor of Finance and Director, Georgetown Psaros Center for Financial Markets and Policy
Abstract
Employing a novel approach with unique public sentiment data and a new metric for shareholder concerns, we find a strong relation between public sentiment and shareholder actions. We demonstrate that the number of shareholder proposals effectively captures investor dissatisfaction with a firm, particularly because it includes firms without shareholder proposals. We show that negative sentiment about financial, environmental, social and governance issues are significantly associated with more shareholder proposals, and we establish causality through an instrumental variable approach. Further, shareholder actions have real consequences as a larger number of shareholder proposals is associated with higher turnover for CEOs and directors.
Attendance
This seminar is open to current students and staff at Newcastle University. Registration is required.