Determinants of the Differential Pricing between Voting and Non-Voting Shares in Brazil'
نویسنده
چکیده
Several papers suggest that private benefits can explain the differential pric ing between share classes with differential voting rights. However 1 in Brazil the price differential between voting and non-voting shares has been negative for sev eral companies between July 1994 and September 2002. This paper investigates the determinants that imply this discount of voting shares vis-a.-vis non-voting shares. Particularly, the paper analyzes the impacts of liquidity, dividend differ ential, and recent changes in legislation of the Brazilian public equity market on the voting premium. This paper ratifies that liquidity is extremely relevant to the determination of relative prices. In addition, empirical evidence confirms a negative impact of Law 9457 revoking voting minority shareholders' tag along rights and a positive impact of the introduction of Law 10303 reinstating those rights to minority voting shareholders. Finally, ownership structure confirmed a positive relationship with the voting premium, but the major shareholders' voting share participation has not presented a significant relationship as in other countries.
منابع مشابه
The Relevance of Tag along Rights and Identity of Controlling Shareholders for the Price Spreads between Dual-Class Shares: the Brazilian Case
This paper analyzes the determinants of the differential pricing of equity classes (the so-called dual-class premium [DCP]) in Brazil from 1995 to 2006 with a focus on two specific corporate governance aspects: i) the granting of tag along rights, a mandatory bid rule that extends to minority shareholders the right to sell their shares in case of a control transfer; and ii) the identity of the ...
متن کاملDouble voter perceptible blind signature based electronic voting protocol
Mu et al. have proposed an electronic voting protocol and claimed that it protects anonymity of voters, detects double voting and authenticates eligible voters. It has been shown that it does not protect voter's privacy and prevent double voting. After that, several schemes have been presented to fulfill these properties. However, many of them suffer from the same weaknesses. In this p...
متن کاملVoting Algorithm Based on Adaptive Neuro Fuzzy Inference System for Fault Tolerant Systems
some applications are critical and must designed Fault Tolerant System. Usually Voting Algorithm is one of the principle elements of a Fault Tolerant System. Two kinds of voting algorithm are used in most applications, they are majority voting algorithm and weighted average algorithm these algorithms have some problems. Majority confronts with the problem of threshold limits and voter of weight...
متن کاملVoting Algorithm Based on Adaptive Neuro Fuzzy Inference System for Fault Tolerant Systems
some applications are critical and must designed Fault Tolerant System. Usually Voting Algorithm is one of the principle elements of a Fault Tolerant System. Two kinds of voting algorithm are used in most applications, they are majority voting algorithm and weighted average algorithm these algorithms have some problems. Majority confronts with the problem of threshold limits and voter of weight...
متن کاملVoting and different ranking orders in DEA
Data Envelopment Analysis (DEA) technique now widely use for efficiency evaluation of a set of Decision Making Units (DMUs). As regards of the necessity for ranking efficient units different DEA models presented each of which has advantages and rank efficient units from special aspects. Note that all the existing ranking models have disadvantages, as well and there is not a model in which all t...
متن کامل