Graduation Year

Fall 2012

Document Type

Campus Only Senior Thesis

Degree Name

Bachelor of Arts

Department

Economics

Reader 1

Serkan Ozbeklik

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Terms of Use for work posted in Scholarship@Claremont.

Rights Information

© 2012 Drew M. Beckerman

Abstract

The Say on Pay vote, part of the Dodd-Frank Wall Street Reform and Consumer Protection Act signed into law by Barack Obama in July 2010, is a non-binding vote that either approves or disapproves of the compensation given to Named Executive Officers. As of June 21, 2012, there have been 103 companies that have failed to reach 50% approval in this vote. For this paper I analyze the 103 companies over event windows of two, four, and ten days around the date of the failure to test for statistically significant abnormal stock market returns. None of the average cumulative abnormal returns for the three event windows are significant at any level, and I find no evidence that failing the Say on Pay vote corresponds to an increase or decrease in stock market returns.

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