Is one share/one vote optimal?†

B-Tier
Journal: Review of Finance
Year: 2025
Volume: 29
Issue: 3
Pages: 635-660

Authors (2)

Denis Gromb Viral Acharya (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

In a tender offer by a value-increasing raider, voting shareholders face a free-rider problem. However, when they are not atomistic, they do not completely free-ride. In contrast, non-voting shareholders, who are never pivotal for the success of the offer, are absolute free-riders. Hence, in this case there is a gain from departing from one share/one vote. This departure also has a cost; there is an increased vulnerability to value-decreasing raiders, and the optimal governance structure balances the cost and the gain.

Technical Details

RePEc Handle
repec:oup:revfin:v:29:y:2025:i:3:p:635-660.
Journal Field
Finance
Author Count
2
Added to Database
2026-01-25