THREE ESSAYS ON CORPORATE GOVERNANCE

Abstract

This thesis consists of three essays on corporate governance. The first essay investigates how institutional ownership networks influence corporate environmental policies. Evidence shows facilities sharing common institutional ownership with nearby firms tend to release fewer toxic chemicals, suggesting geographic ownership connections facilitate internalizing environmental externalities. The second essay explores shareholders’ racial preferences in director elections, documenting that mutual fund managers are more likely to vote for director nominees of the same race/ethnicity. This same-race voting pattern aligns with taste-based racial bias explanations and affects the election and career outcomes for director candidates. The final essay studies benefits and incentives for mutual funds owning product market competitors. Funds with higher common ownership in product competitors earn superior returns and are more likely to vote against firms’ competition. Collectively, these essays highlight the role of institutional shareholders in shaping corporate landscapes and their impact on other stakeholders in the corporate governance process.