The Market Value of Corporate Votes: Theory and Evidence from Option Prices

• 成果类型: Article
• 署名作者: Kalay, Avner; Karakas, Oguzhan; Pant, Shagun
• 署名单位: Tel Aviv University; Utah System of Higher Education; University of Utah; Boston College; University of Iowa
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/jofi.12132
• 发表日期: 2014
• 页码: 1235-1271
• 关键词: share-one vote; voting-rights; SHAREHOLDER ACTIVISM; private benefits; relative prices; governance; BEHAVIOR

摘要

This paper proposes a new method using option prices to estimate the market value of the shareholder voting rights associated with a stock. The method consists of synthesizing a nonvoting share using put-call parity, and comparing its price to that of the underlying stock. Empirically, we find this measure of the value of voting rights to be positive and increasing in the time to expiration of synthetic stocks. The measure also increases around special shareholder meetings, periods of hedge fund activism, and M&A events. The method is likely useful in studies of corporate control and also has asset pricing implications.