Investor Ideology

Award Winner: 
Winner of the 2019 Aberdeen Standard Investments Finance Prize (Best paper in the Finance Working Paper series)

Investor Ideology

Patrick Bolton, Tao Li, Enrichetta Ravina, Howard Rosenthal

Series number :

Serial Number: 

Date posted :

April 04 2018

Last revised :

September 03 2019
SSRN Share


  • institutional investors • 
  • proxy voting • 
  • Ideology • 
  • Spatial Model

We estimate institutional investor preferences from proxy voting records. The W-NOMINATE method maps investors onto a left-right dimension based on votes for fiscal year 2012. Public pension funds and other investors on the left support a more social and environment-friendly orientation of the firm and fewer executive compensation proposals. “Money conscious” investors appear on the right.

The proxy adviser ISS makes voting recommendations that place it center, to the left of most mutual funds. A second dimension reflects a more traditional governance view, with management disciplinarian investors, the proxy adviser Glass-Lewis among them, pitted against more management friendly ones.


Real name:
Tao Li
University of Warwick
Real name:
Howard Rosenthal