Distraction channel: Evidence from shareholder proposals.

This table reports the impact of institutional cross-blockholding on firms’ proposals on socially responsible investment (SRI). The percentage and number of all SRI proposals and passed SRI proposals are used in this analysis. The dependent variables %SRIt+1, %SRI_PASSt+1, NUM_SRIt+1, and NUM_SRI_PASSt+1 denote the percent of proposals on SRI, the percent of passed proposals on SRI, the number of proposals on SRI, and the number of passed proposals on SRI, respectively. Panel A shows the results for the percentage of SRI proposals, and Panel B reports the results for the number of SRI proposals. The shareholder proposals data come from the ISS Shareholder Proposals database. The independent variable and control variables are the same as those in the baseline regressions. Firm and industry×year fixed effects are included to control for the invariant factors on firm and all factors at the industry level. Industries are classified by Fama-French 48 Industries. Standard errors are adjusted for heteroskedasticity and clustered by firm. *, **, and *** indicate significance at the 10%, 5%, and 1% levels, respectively. Standard errors are shown in the parentheses. For brevity, we only report coefficients of interest and constant terms.