PROXY ADVISORS: A CRITICAL ANALYSIS

Download This Article

Christophe Volonté ORCID logo, Simon Zaby ORCID logo

https://doi.org/10.22495/cocv11i1c10p3

Abstract

The influence exerted by proxy advisors or proxy firms has become significantly more important over the last few years in pace with the increased activity of institutional investors. Recently, the adoption of a Swiss referendum has given fresh impetus to this development, concerning also international stockholders in the country. Spill-over effects to the regulations of neighbor countries are not unlikely. Given this context, it is essential that the role of proxy advisory services and the associated stakeholders be critically appraised. Substantial problems may arouse with regard to the methodology that proxy advisors apply, the conflicts of interest that they confront, the transparency of their services or the lack thereof, and the competition in their market.

Keywords: Corporate Governance, Proxy Advisory, Institutional Investors, Ownership & Control

How to cite this paper: Volonté, C., & Zaby, S. (2013). Proxy advisors: a critical analysis. Corporate Ownership & Control, 11(1-10), 857-863. https://doi.org/10.22495/cocv11i1c10p3