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The Banzhaf index in complete and incomplete shareholding structures: A new algorithm

  • Levy, Marc

In this global world, many firms present a complex shareholding structure with indirect participation, such that it may become difficult to assess a firm's controllers. Furthermore, if there are numerous dominant shareholders, the control can be shared between them. Determining who has the most influence is often a difficult task. To measure this influence, game theory allows the modeling of voting games and the computing of the Banzhaf index. This paper firstly offers a new algorithm to compute this index in all structures and then suggests some modelisations of the floating shareholder. Then, our model is applied to a real case study: the French group Lafarge. This exemplary case demonstrates how the float's structure and hidden coalition can impact the power relationship between dominant shareholders.

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Article provided by Elsevier in its journal European Journal of Operational Research.

Volume (Year): 215 (2011)
Issue (Month): 2 (December)
Pages: 411-421

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Handle: RePEc:eee:ejores:v:215:y:2011:i:2:p:411-421
Contact details of provider: Web page: http://www.elsevier.com/locate/eor

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