Abstract
This paper investigates whether an increase in individual ownership lowers a discipline on corporate management. To measure the discipline by shareholders, we use the voting outcome at director elections and the rate of voting rights which “DoNotVote”. From the empirical analysis, the more ownership individual investors hold, the less voting rights exercise. Individual investors are likely to have less incentive to discipline corporate management because their investment amount is small. This result suggests that an increase in individual ownership lowers discipline on corporate management.
