. Shareholders determine production plans by voting — one share, one vote — and at ?-majority stable stock market equilibria …

In the present paper we study voting-based corporate control in a general equilibrium model with incomplete financial … markets. Since voting takes place in a multi-dimensional setting, super-majority rules are needed to ensure existence of … equilibrium. In a linear-quadratic setup we show that the endogenization of voting weights (given by portfolio holdings) can give …