Our data are inconsistent with claims that disclosure is harmful, and are consistent with the idea that well-managed companies responsive to shareholder concerns tend to be valued more highly than other companies. Our results lead us to support two initiatives that are clearly within the SEC’s jurisdiction, authority, and expertise:
- The SEC should require publicly traded companies to disclose to shareholders and the public their expenditures used for political purposes, including donations to trade associations that help finance electioneering and/or lobbying activities.
- The rules should stipulate that shareholders have the right to use the company’s proxy statement to propose and (if approved by the requisite vote of shareholders under state law) to adopt by-laws requiring that any publicly traded company’s political spending budget – including electioneering and lobbying expenditures – be approved by a majority vote of all shareholders in advance of any political spending.
SEC Action Needed to Fulfill the Promise of Citizens United
