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...

This discussion provides several explanations for the evidence presented in Balachandran and Mohanram (2010) that are consistent with efficient contracting. I also show that - contrary to the suggestion of the title - CEOs do not benefit from value destroying growth in earnings. Finally, I argue...