Abstract

This paper examines empirically the announcement effect of commercial corporate governance ratings on share returns. Rating downgrades by Institutional Shareholder Services (ISS) are associated with negative returns of –1.14% over a 3-day announcement window. The returns are highly correlated with the proprietary analysis of ISS and are decreasing in agency costs, consistent with ratings providing independent information on underlying corporate governance quality. We thus show that the influence and impact of ISS extends beyond proxy recommendations and subsequent voting outcomes. Our findings contrast with the insignificant price impact of Daines, Gow, and Larcker (2010), whose analysis we replicate and successfully reconcile to ours by pooling upgrades and downgrades together.

中文翻译：

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公司治理评级会改变投资者的期望吗？机构股东服务公告的证据*

摘要

本文从经验上考察了商业公司治理评级对股票收益的公告影响。在三天的公告期内，机构股东服务（ISS）将评级下调与–1.14％的负回报相关。收益与ISS的专有分析高度相关，并且代理成本不断下降，这与提供有关基础公司治理质量的独立信息的评级一致。因此，我们表明，国际空间站的影响和影响超出了代理建议和随后的投票结果。我们的发现与Daines，Gow和Larcker（2010）对价格的微不足道的影响形成鲜明对比，Daines，Gow和Larcker（2010）对其分析进行了复制，并通过将升级和降级集中在一起，成功地与我们进行了调和。