Why Votes Have a Value

  title={Why Votes Have a Value},
  author={Ingolf Dittmann and Dorothea K{\"u}bler and Ernst Maug and Lydia Mechtenberg},
We perform an experiment where subjects pay for the right to vote in a firm when they can also buy non-voting shares with the same dividend rights. Voting on the replacement of the manager changes the expected value of future dividends. We observe a significant premium for the voting shares. We formulate three versions of the instrumental voting hypothesis and find that none can explain our experimental results. We also formulate three versions of the expressive voting hypothesis and find that… CONTINUE READING

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