Service Business

, Volume 13, Issue 2, pp 419–431 | Cite as

Using voting decisions to identify shocks in the financial services industry

  • Juan Pineiro-ChousaEmail author
  • Marcos Vizcaíno-González
  • Samuel Ribeiro-Navarrete
Empirical article


This paper assesses the effects of industry shocks on shareholder votes in the financial services industry. We analyze votes on managers’ proposals for executive compensation and the election of directors in NASDAQ financial companies from 2003 to 2017. Our analyses imply that shareholders’ reactions to major industry shocks are reflected in shareholder voting decisions. We report evidence of significant changes in the fundamental drivers of those decisions for four recent industry shocks: the onset of the financial crisis in 2007, the subsequent stimulus decisions by G20 countries, the European sovereign debt crisis, and the emerging markets crisis. These findings can help managers understand what drives shareholder satisfaction in the uncertain environments that follow industry shocks. This insight can help managers design successful strategies to cope with the effects of such shocks.


Financial services Service business Shareholder votes Industry shocks Financial crisis 


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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  • Juan Pineiro-Chousa
    • 1
    Email author
  • Marcos Vizcaíno-González
    • 2
  • Samuel Ribeiro-Navarrete
    • 3
  1. 1.Department of Financial Economics and Accounting, Facultad de ADEUniversidad de Santiago de CompostelaLugoSpain
  2. 2.Department of BusinessUniversidade da CoruñaA CoruñaSpain
  3. 3.University of ValenciaValenciaSpain

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