TRADING VOLUME, MANAGEMENT SOLICITATION, AND SHAREHOLDER VOTING

In an investigation of possible relationships between shareholder voti ng turnout, trading volume after the record date, and the intervals be tween the record and meeting dates, we find that higher trading volume and more trading days between the record date and the receipt of prox y materials both reduce voting turnout. A longer interval between the receipt of proxy materials and the meeting increases turnout, as does greater solicitation expense. Our tests show that management mails pro xies further in advance of the meeting when its proposals require a ma jority of shares outstanding, as opposed to votes cast, for approval.