The Impact of CCGG: Collective Action and Governance Activism

Professors Alexander Dyck and Craig Doidge of the University of Toronto published a revision of their 2015 independent study on the impact of CCGG’s collective engagement efforts in July 2019, titled Collective Action and Governance Activism (available online). Key findings of the study reveal that the creation of CCGG significantly increased activism incentives compared to the incentives of a single institutional investor; CCGG’s dollar holdings and voting power are significant determinants of investors’ direct access to the board and of engagements; and CCGG has a positive impact on the likelihood that issuers will adopt specific governance reforms that CCGG requests (namely majority voting, say-on-pay, and compensation policies). Due to its collective large dollar holdings and voting power that is, on average, four to six times larger than the largest institutional investor, the study found that issuers engaged by CCGG are at least 58% more likely than non-engaged issuers to adopt CCGG’s governance proposals. The updated study concludes that institutional investors improve governance outcomes through investor collective action organizations such as the CCGG.

To access the study, click here: