This article analyzes the outcome of social policy shareholder resolutions. It does so by focusing on many types of resolution withdrawals sponsored by various types of filers. The paper shows that some characteristics of the resolutions themselves as well as those of the targeted firms play a role in the likelihood of a negotiated settlement between filer and management. Some issues, such as board diversity or equal employment, seem more conducive to a negotiated settlement of the resolutions filed. Others, such as energy and environment, against our expectations, do not seem to tilt the negotiation in favour of filers. The percentage of votes received by the resolution the year before also increases the probability of a favourable settlement for filers. Moreover, when introduced into the regressions, this variable overrides many other variables’ influence in the outcome.
PREVIOUS LITERATURE ON THE OUTCOMES OF SHAREHOLDER RESOLUTIONS
SAMPLE AND SOURCES OF DATA
DISCUSSION OF RESULTS