The effect of voting rights on firm value

Scherrer, Cristina Mabel and Fernandes, Marcelo (2020) The effect of voting rights on firm value. International Review of Finance. ISSN 1369-412X

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Abstract

We present a simple framework for dual‐class stock shares in which common shareholders receive public and private cash flows (i.e., dividends and any private benefit of holding voting rights) and preferred shareholders only receive public cash flows. We isolate these two cash flows in order to identify the role of voting rights on equity‐holders' wealth. In particular, using a structural cointegrated VAR model, we find a negative relationship between the value of the voting right and the preferred shareholders' wealth.

Item Type: Article
Uncontrolled Keywords: dual-class shares,private benefits,voting right,finance,economics and econometrics ,/dk/atira/pure/subjectarea/asjc/2000/2003
Faculty \ School: Faculty of Social Sciences > Norwich Business School
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Depositing User: LivePure Connector
Date Deposited: 17 Jul 2020 23:46
Last Modified: 25 Aug 2020 23:59
URI: https://ueaeprints.uea.ac.uk/id/eprint/76169
DOI: 10.1111/irfi.12318

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