It is widely believed in the corporate governance literature that deviating from the `one share-one vote' principle leads to corporate inefficiencies. We analyze the market reaction to a change from the `one head-one vote' to the `one share-one vote' mechanism by means of a quasi-natural experiment: an Italian reform forcing a subset of cooperative banks to transform into joint-stock companies. We estimate the market valuation of the effects of the governance change around the event date being equal to a cumulative average return of about 14% using an event study methodology, and of about 13% using bayesian techniques.

Botta, M., Colombo, L. V. A., The Value of Voting Rights in Italian Cooperative Banks: A Quasi-Natural Experiment, <<MANAGERIAL FINANCE>>, 2020; 46 (7): 861-882. [doi:10.1108/MF-07-2019-0341] [http://hdl.handle.net/10807/179207]

The Value of Voting Rights in Italian Cooperative Banks: A Quasi-Natural Experiment

Botta, Marco;Colombo, Luca Vittorio Angelo
2020

Abstract

It is widely believed in the corporate governance literature that deviating from the `one share-one vote' principle leads to corporate inefficiencies. We analyze the market reaction to a change from the `one head-one vote' to the `one share-one vote' mechanism by means of a quasi-natural experiment: an Italian reform forcing a subset of cooperative banks to transform into joint-stock companies. We estimate the market valuation of the effects of the governance change around the event date being equal to a cumulative average return of about 14% using an event study methodology, and of about 13% using bayesian techniques.
2020
Inglese
Botta, M., Colombo, L. V. A., The Value of Voting Rights in Italian Cooperative Banks: A Quasi-Natural Experiment, <<MANAGERIAL FINANCE>>, 2020; 46 (7): 861-882. [doi:10.1108/MF-07-2019-0341] [http://hdl.handle.net/10807/179207]
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10807/179207
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