Fox School of Business, Finance
Alter Hall 426
1801 Liacouras Walk
Philadelphia, PA 19122
NBER Working Papers and Publications
|March 2014||Evasive Shareholder Meetings|
with David Yermack: w19991
We study the location and timing of annual shareholder meetings. When companies move their annual meetings a great distance from headquarters, they tend to announce disappointing earnings results and experience pronounced stock market underperformance in the months after the meeting. Companies appear to schedule meetings in remote locations when the managers have private, adverse information about future performance and wish to discourage scrutiny by shareholders, activists, and the media. However, shareholders do not appear to decode this signal, since the disclosure of meeting locations leads to little immediate stock price reaction. We find that voter participation drops when meetings are held at unusual hours, even though most voting is done electronically during a period of weeks befo...