Filling in the Governance Void: The Voice of Individual Investors

Prof. Shufang LAI, Assistant Professor, Southern University of Science and Technology

Date:         1 February 2023 (Wednesday)
Time:        4:30pm – 5:30pm
Venue:      Online via Zoom
Host:         Prof. Rubin HAO, Assistant Professor of Accounting
Zoom Link:  https://umac.zoom.us/j/99031416356


We examine investors’ corporate engagements on an online interactive platform that is curated by regulators to facilitate the communication between small investors and publicly listed firms. Investors can query for information and voice their criticisms and suggestions in these online engagements. We find that investors’ engagements on the platform increase when the firm shows signs of underperformance, weaker external monitoring from institutional investors, or weaker managerial incentive alignment with shareholders. More active engagements on the platform are associated with more timely enforcement actions against securities law violations. Overall, our findings suggest that individual investors in aggregate manifest incentives to fill in the void in corporate governance when empowered by a conducive regulatory environment.



Prof. Shufang LAI is the Assistant Professor in Southern University of Science and Technology. She obtained her PhD from The Chinese University of Hong Kong Accounting in 2016. Her research investigates corporate finance, corporate governance, corporate information disclosure and fintech. Her papers have been published in The Accounting Review.

All are welcome!