RESTRICTED VOTING STOCK AND CORPORATE CONTROL (INSIDER SHAREHOLDINGS, UNITED KINGDOM)

This dissertation examines the valuation and financial histories of a sample of 152 British firms which had differential voting right/multiple ordinary share (DVR/MOS) classes outstanding at some time during the period 1955-1982. On average, the superior voting rights shares (SVS) had market prices which were 13.3% higher than the otherwise equivalent class of restricted voting rights shares (RVS). The mean "voting rights premium" (VRP) for a subsample of these firms which also had voting preferred stock outstanding was 23.0%, while the mean VRP for a subsample of nine companies which were subsidiaries of other firms was 6.0%.