The paper models the relative prices of shares that differ only in their voting rights. The voting premium is derived as a function of the probability of takeover. We analyse how the voting premium is determined by the relative efficiency of the rival, the share structure, and by ownership...

The paper estimates the gains from takeover in a sample of Swedish public- tender offers and analyses its division between target and bidder shareholders. It finds that target and bidder shareholders collectively gain 6% in merger bids and 3% in minority buyouts, and that target shareholders...

One of the main decisions facing firms is that of a choice of a capital structure, and in particular the choice of debt versus equity. Models where capital structure matters have focused either on the incentive approach, where agency problems stemming from the separation between ownership and...