We perform an experiment where subjects pay for the right to participate in a shareholder vote. We find that experimental subjects are willing to pay a significant premium for the voting right even though there should be no such premium in our setup under full rationality. Private benefits from...

This paper shows that open market block trading can provide a link between private benefits of control enjoyed by large shareholders and the "voting premiumʺ, i.e. the price difference between voting and non-voting shares. We first demonstrate in a microstructure model with informed traders and...

Voting and non-voting shares of ten German companies are analyzed for fractional cointegration. It turns out that seven pairs of price series are fractionally cointegrated, which means that for each pair there is a linear combination of the two series that is a long-memory process. If two stocks...