Title:
Shareholders' voting power and block transaction premia: an empirical analysis of Italian listed companies
Description:
WP 17/1996; According to our pricing framework block transaction premia depend on voting power being transferred through a block relative to voting power enjoyed by the market. Block transaction premia are shown to be correlated with both the block seller's and the block buyer's Shapley-Shubik power indexes in a sample of Italian companies. This is consistent with the notion, first presented by Zwiebel (1995), that private benefits deriving from control of a company are divisible, and that the share of private benefits accruing to each shareholder is proportional to the probability of being pivotal in a controlling coalition.
Publisher:
CNR Ceris
Date:
1996