search query: @indexterm COMPANY CONTROL / total: 160
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| Author: | Nenova, T. |
| Title: | The value of corporate voting rights and control: a cross-country analysis |
| Journal: | Journal of Financial Economics
2003 : JUN, VOL. 68:3, p. 325-351 |
| Index terms: | Company control Mergers Voting Investors Country comparisons |
| Language: | eng |
| Abstract: | The author measures the value of corporate voting rights, specifically of the control block of votes, in a sample of 661 dual-class firms in 18 countries, in 1977. The measure is adjusted for takeover probability, block-holding costs, and dividend and liquidity differences between the share classes. The value of controlblock votes varies widely across countries. It is close to half of firm market value in South Korea, and close to zero in Finland. The value of control-block votes is interpreted as a lower bound for actual private benefits of the controlling shareholder. The legal environment, law enforcement, investor protection, takeover regulations, and power-concentrating corporate charter provisions explain 68 % of the cross-country variation in the value of control-block votes. |
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