Using a unique dataset including all rights issues of new shares and other equity-like securities announced by Italian listed banks between 1989 and 2014, and exploiting the ideal setting provided by the Italian Banking Law, which allows for listed co-operative banks, we test if the ‘one head-one vote’ principle of co-operative banks and the ‘one share-one vote’ voting system of joint stock banks imply different agency costs of equity. Our empirical results, obtained using an event-study methodology, regressions and matching estimators, support our research hypothesis that co-operative banks have greater agency costs of equity compared to joint stock banks, and contribute to the literature on demutualization and cooperative hybrids.

Ferretti, R., P., Pattitoni e A., Castelli. "Security-voting structure and equity financing inthe Banking Sector: ‘One Head-One Vote’ versus ‘One Share-One Vote’" Working paper, CEFIN WORKING PAPERS, Dipartimento di Economia Marco Biagi - Università di Modena e Reggio Emilia, 2019. https://doi.org/10.25431/11380_1197771

Security-voting structure and equity financing inthe Banking Sector: ‘One Head-One Vote’ versus ‘One Share-One Vote’

Ferretti, R.;
2019

Abstract

Using a unique dataset including all rights issues of new shares and other equity-like securities announced by Italian listed banks between 1989 and 2014, and exploiting the ideal setting provided by the Italian Banking Law, which allows for listed co-operative banks, we test if the ‘one head-one vote’ principle of co-operative banks and the ‘one share-one vote’ voting system of joint stock banks imply different agency costs of equity. Our empirical results, obtained using an event-study methodology, regressions and matching estimators, support our research hypothesis that co-operative banks have greater agency costs of equity compared to joint stock banks, and contribute to the literature on demutualization and cooperative hybrids.
2019
Gennaio
Ferretti, R.; Pattitoni, P.; Castelli, A.
Ferretti, R., P., Pattitoni e A., Castelli. "Security-voting structure and equity financing inthe Banking Sector: ‘One Head-One Vote’ versus ‘One Share-One Vote’" Working paper, CEFIN WORKING PAPERS, Dipartimento di Economia Marco Biagi - Università di Modena e Reggio Emilia, 2019. https://doi.org/10.25431/11380_1197771
File in questo prodotto:
File Dimensione Formato  
CEFIN-WP74.pdf

Open access

Tipologia: Versione pubblicata dall'editore
Dimensione 1.26 MB
Formato Adobe PDF
1.26 MB Adobe PDF Visualizza/Apri
Pubblicazioni consigliate

Licenza Creative Commons
I metadati presenti in IRIS UNIMORE sono rilasciati con licenza Creative Commons CC0 1.0 Universal, mentre i file delle pubblicazioni sono rilasciati con licenza Attribuzione 4.0 Internazionale (CC BY 4.0), salvo diversa indicazione.
In caso di violazione di copyright, contattare Supporto Iris

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11380/1197771
Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus ND
  • ???jsp.display-item.citation.isi??? ND
social impact