The Price of a Marginal Vote: What Happens when Stocks go Ex Vote

This is the first study to measure the price of a marginal vote by observing stocks as they go from cum vote to ex vote. On average stock prices decline by nine basis points but more with certain types of votes. Stocks drop by 66 basis points with shareholder-initiated proposals. Trading volume also changes around the ex day. Management acts strategically when setting record dates. Stock exchanges sell information to select investors about record dates that appears to impact stock prices and trading volume. These findings offer new insights into the dynamics of shareholder voting.