The Value of the Voting Right: A Study of the Milan Stock Exchange Experience
- 1 January 1994
- journal article
- research article
- Published by Oxford University Press (OUP) in The Review of Financial Studies
- Vol. 7 (1), 125-148
- https://doi.org/10.1093/rfs/7.1.125
Abstract
I study the large premium (82 percent) attributed to voting shares on the Milan Stock Exchange. The premium varies according to the ownership structure and the concentration of the voting rights, and it can be rationalized in the presence of enormous private benefits of control. A case study seems to indicate that in Italy private benefits of control can easily be worth more than 60 percent of the value of nonvoting equity. A tentative explanation for these findings is provided.Keywords
This publication has 16 references indexed in Scilit:
- Private benefits from control of public corporationsJournal of Financial Economics, 1989
- The value of the corporate voting right: Evidence from SwitzerlandJournal of Banking & Finance, 1988
- One share-one vote and the market for corporate controlJournal of Financial Economics, 1988
- Corporate control contests and capital structureJournal of Financial Economics, 1988
- Managerial ownership of voting rightsJournal of Financial Economics, 1985
- The Market Value of Differential Voting Rights in Closely Held CorporationsThe Journal of Business, 1984
- The market value of control in publicly-traded corporationsJournal of Financial Economics, 1983
- Economic Evaluation of Voting Power of Common StockThe Journal of Finance, 1983
- Takeover Bids, The Free-Rider Problem, and the Theory of the CorporationThe Bell Journal of Economics, 1980
- Mergers and the Market for Corporate ControlJournal of Political Economy, 1965