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Disentangling disproportionality

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  • Poulsen, Thomas

Abstract

The literature on deviations from one share-one vote seems to ignore that a difference between influence and investment, i.e., disproportionality, may exist without control enhancing mechanisms such as dual class shares. I propose a method to disentangle disproportionality and argue for its relevance. The consequences are documented on a testing data set.

Suggested Citation

  • Poulsen, Thomas, 2012. "Disentangling disproportionality," Economics Letters, Elsevier, vol. 117(3), pages 743-745.
    • Handle: RePEc:eee:ecolet:v:117:y:2012:i:3:p:743-745
    DOI: 10.1016/j.econlet.2012.08.036
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    References listed on IDEAS

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    More about this item

    Keywords

    Ownership structure; Disproportionality; Voting power; Firm value;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance

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