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Cited by 970Corporate Finance and GovernanceFinancial Markets and Investment StrategiesFinancial Reporting and Valuation Research

The Value of the Voting Right: A Study of the Milan Stock Exchange Experience

Zingales, Luigi·1994·Review of Financial Studies
DOI 10.1093/rfs/7.1.125
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Abstract

I study the large premium (82 percent) attributed to voting shares on the Milan Stock Exchange. The premium varies according to the ownership structure and the concentration of the voting rights, and it can be rationalized in the presence of enormous private benefits of control. A case study seems to indicate that in Italy private benefits of control can easily be worth more than 60 percent of the value of nonvoting equity. A tentative explanation for these findings is provided.

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Crossref · 10.1093/rfs/7.1.125

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24 of 24 references verified0 citation errors · 0 not checkable

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  • Control is valued, and voting premiums increase as shareholder protection deteriorates.

    “The evidence also shows directly that control is valued, and specifically that voting premiums increase as shareholder protection deteriorates (see, for example,Modigliani and Perotti 1998, Nenova 1999, and Zingales 1994).”

    From Investor protection and corporate governance (2000) · cites this paper as Zingales 1994

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Authors
Zingales, L.
Affiliations
University of Chicago (US)
Corresponding author
Zingales, Luigi
ORCID
Zingales, Luigi
Venue
Review of Financial Studies
Publisher
Oxford University Press (OUP)
Published
1994-01
Volume
7
Issue
1
Pages
125-148
ISSN
  • 0893-9454 (ISSN-L)
  • 1465-7368
DOI
10.1093/rfs/7.1.125
OpenAlex
W2136164601
Cited by
970
References
24
Citations by year
2026: 10 · 2025: 17 · 2024: 14 · 2023: 20 · 2022: 10 · 2021: 15 · 2020: 26 · 2019: 22 · 2018: 27 · 2017: 22 · 2016: 25 · 2015: 30 · 2014: 33 · 2013: 37 · 2012: 54
FWCI
83.53
Type
journal article
Language
en
Open access
closed
Locations
Review of Financial Studies (publishedVersion)
Topics
  • Social Sciences › Business, Management and Accounting › Accounting › Corporate Finance and Governance
  • Social Sciences › Economics, Econometrics and Finance › Finance › Financial Markets and Investment Strategies
  • Social Sciences › Business, Management and Accounting › Strategy and Management › Financial Reporting and Valuation Research
Keywords
voting rights, private benefits of control, share premium, ownership structure, Milan Stock Exchange, corporate governance

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