A New Take on Voice: The Influence of BlackRock’s 'Dear CEO' Letters

• DOI: 10.2139/ssrn.3763042
• Publication Date: 2021-02-20T12:04:54Z
• Authors: Andrea Pawliczek; Ashley Nicole Ski...; Laura Wellman
• Keywords: Masked Hypertension

We examine whether broad-based public engagement by institutional investors influences the behavior of portfolio firms. investigate this question in context BlackRock’s annual “Dear CEO” letter, which recent years has called for firms to acknowledge and quantify impact environmental regulatory factors on their find that firms’ disclosures reflect topics similar those discussed letters during post-letter period, controlling a variety firm disclosure characteristics, occurrence private engagements. Moreover, BlackRock appears value these additional disclosures, as it more often votes with management shareholder proposals subsequent meetings. Finally, motivated attempts mobilize toward its specific policy recommendations, we also provide some evidence lobbying efforts become aligned issues highlighted letter especially when share preferences ex ante. Taken together, our suggests are responsive efforts.