Shareholder Coordination and Waste Management

ABSTRACT This study examines how shareholder coordination relates to corporate waste management. Drawing on 1059 firm‐year observations from S&P 500 firms between 2010 and 2022, we show that higher levels of coordination among shareholders correspond to reduced waste generation. This effect is more pronounced in firms whose coordinated shareholders are more common. Moreover, we find that this negative coordination–waste link is stronger in firms with a higher CEO pay gap, lower board co‐option, and lower analyst coverage. Furthermore, we propose that shareholder coordination reduces waste generation through three mechanisms: agency costs, information asymmetry, and financial constraints. Our main results remain robust after a variety of endogeneity tests.