On the manipulability of a class of social choice functions: plurality kth rules

In this paper we introduce the plurality kth social choice function selecting an alternative, which is ranked kth in the social ranking following the number of top positions of alternatives in the individual ranking of voters. As special case the plurality 1st is the same as the well-known plurality rule. Concerning individual manipulability, we show that the larger k the more preference profiles are individually manipulable. We also provide maximal non-manipulable domains for the plurality kth rules. These results imply analogous statements on the single non-transferable vote rule. We propose a decomposition of social choice functions based on plurality kth rules, which we apply for determining non-manipulable subdomains for arbitrary social choice functions. We further show that with the exception of the plurality rule all other plurality kth rules are group manipulable, i.e. coordinated misrepresentation of individual rankings are beneficial for each group member, with an appropriately selected tie-breaking rule on the set of all profiles.

US Senate Dems will push vote rule changes

Headline UNITED STATES: Senate Dems will push vote rule changes

The control-ownership wedge and the survival of French IPOs

Purpose The purpose of this paper is to investigate the effect of the control-ownership wedge of controlling shareholders (excess control) on the survival of French initial public offerings (IPOs). Design/methodology/approach This paper studies a large sample of 434 French IPOs. The empirical analysis uses the Cox proportional hazard and accelerated-failure-time models. Data are manually gathered from IPO prospectuses. Findings The findings support a positive relation between the control-ownership wedge and IPO survival time, indicating that survival is more likely in firms with high excess control levels. This result is consistent with the view that controlling shareholders with a large control-ownership wedge have incentives to preserve their private benefits of control by increasing firm survival chances. The findings also show that older IPOs are more likely to survive, while riskier and underpriced IPOs are more likely to delist. Practical implications The results provide a better understanding of the role of excess control in IPO survival. They also enrich the debate on the efficiency of the one-share-one-vote rule. Originality/value The research provides new insights into the role of agency conflicts in IPO survivability. In particular, it explores the effect of dominant shareholders with a control-ownership wedge on survival time.

Changing the Paradigm of Stock Ownership from Concentrated Towards Dispersed Ownership? Evidence from Brazil and Consequences for Emerging Countries

29 Northwestern Journal of International Law & Business, (2009)This paper analyzes micro-level dynamics of changes in ownership structures. It investigates a unique event: changes in ownership patterns currently taking place in Brazil. It builds upon empirical evidence to advance the theoretical understanding of how and why concentrated ownership structures can change towards dispersed ownership.Commentators argue that the Brazilian capital markets are finally taking off.The number of listed companies and Initial Public Offerings (IPOs) in the São Paulo Stock Exchange (Bovespa) has greatly increased. Firms are migrating to Bovespa's special listing segments, which require higher standards of corporate governance. Companies have sold control in the market, and the stock market has recently seen an attempted hostile takeover. This paper discusses these current developments and analyzes ownership structures of companies listed on Bovespa's listing segments based on data from 2006 and 2007. It provides the first evidence of the decline of ownership concentration in Brazilian corporations.There is, however, an important caveat: dispersed ownership is mainly found in Novo Mercado, the listing segment that requires the one-share-one-vote rule. This paper, then, investigates firms' migration patterns, and finds that eighty-five percent of Novo Mercado's firms are "new entrant" firms. Traditional firms have mostly migrated to Level 1, the least stringent corporate governance segment. Thus, there are two corporate worlds in Brazilian capital markets: new corporations that adopt proactive corporate governance patterns, and established corporations that retain their main patterns of corporate governance or ownership structure.This paper additionally explores the consequences of increased dispersion of ownership through private contracting, such as shareholders' agreements and bylaws. The evidence suggests an increasing reliance on shareholders' agreements to coordinate joint control and to bind directors' votes. Research also shows a growing adoption of anti-takeover devices in bylaws.Finally, this paper sheds light on the incentives that may alter preferences of controlling shareholders. This discussion also explains why controlling shareholders opt to create greater diversity of ownership structures. This analysis advances our knowledge of corporate structures in other emerging countries.

The correlation between management power and risk in the Italian companies

The shareholders can not directly manage the business but they have powers of pulse and control by voting right that is essential for the correct functioning of the company. In 1942 the Italian legislature, although with some exceptions, adopted One share – One vote rule. The legal framework changed significantly after the enactment of corporate law reform in 2003. The objective of this research is to examine the status of the principle of correlation between management power and risk in the context of the regulatory framework of Italian public companies, as it emerged after the enactment of above mentioned corporate law reform in 2003.