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An Empirical Comparison of the Performance of Classical Power Indices

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  • Leech, D.

Abstract

This paper assesses the indices against a set of reasonable criteria in terms of shareholder voting power and the control of the corporation in a large cross section of British companies. Each company is a separate voting body and there is much variation in the distribution of voting shares among them. Moreover reasonable criteria exist against which to judge the indices. New algorithms for the Shapley-Shubik and Banzhaf indices are applied to detailed data on beneficial ownership of 444 large UK companies without majority control.

Suggested Citation

  • Leech, D., 2000. "An Empirical Comparison of the Performance of Classical Power Indices," The Warwick Economics Research Paper Series (TWERPS) 563, University of Warwick, Department of Economics.
    • Handle: RePEc:wrk:warwec:563
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    References listed on IDEAS

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    1. repec:bla:scandj:v:90:y:1988:i:2:p:245-53 is not listed on IDEAS
    2. Philip Straffin, 1977. "Homogeneity, independence, and power indices," Public Choice, Springer, vol. 30(1), pages 107-118, June.
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    Keywords

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    JEL classification:

    • G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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