The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu The leading online blog in the fields of corporate governance and financial regulation. Thu, 16 Jul 2026 13:31:56 +0000 en-US hourly 1 https://wordpress.org/?v=6.5.8 https://corpgov.law.harvard.edu/wp-content/uploads/2024/02/cropped-photography-4-e1706898544564-1-32x32.png The Proof is in the Proxy: Connecting Governance to Returns – The Harvard Law School Forum on Corporate Governance https://corpgov.law.harvard.edu 32 32 The Proof is in the Proxy: Connecting Governance to Returns https://corpgov.law.harvard.edu/2026/04/21/the-proof-is-in-the-proxy-connecting-governance-to-returns/?utm_source=rss&utm_medium=rss&utm_campaign=the-proof-is-in-the-proxy-connecting-governance-to-returns https://corpgov.law.harvard.edu/2026/04/21/the-proof-is-in-the-proxy-connecting-governance-to-returns/#respond Tue, 21 Apr 2026 11:32:56 +0000 https://corpgov.law.harvard.edu/?p=180284?d=20260420155745EDT Posted by Bob Herr, Landon Shea, and Peter Højsteen-Ljungbeck, AllianceBernstein, on Tuesday, April 21, 2026
Editor's Note:

Bob Herr is a Senior Vice President and Director of Corporate Governance, Landon Shea is an Investment Stewardship Associate, and Peter Højsteen-Ljungbeck is an Assistant Vice President at AllianceBernstein. This post is based on an AllianceBernstein memorandum by Mr. Herr, Mr. Shea, Mr. Højsteen-Ljungbeck, John Huang, and Ryan Oden.

Our research shows a link between governance and stock returns.

Investors have long suspected that companies with poor corporate governance may be more prone to mismanagement and weak returns. Our research suggests they’re right.

Specifically, our proxy voting study shows a connection between governance and return. We think proxy voting is one of the best tools investors can use to express a view on the quality of a firm’s governance, providing it’s based on careful analysis and accountability, not a rubber stamp.

We believe that proxy voting—alongside direct engagement*—may encourage companies to improve their governance practices, which may result in better long-term outcomes. Several studies, including our own findings, have made this connection much more apparent.

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