Ernst-Ludwig von Thadden
This paper develops a theory of blockholder governance and the voting premium. A blockholder and dispersed shareholders first trade in a competitive market and then vote at a shareholder meeting. A positive voting premium emerges only if the blockholder is not the median voter, since he is then willing to pay a higher price to move the median voter in his preferred direction.
Professor of Finance, University of St. Gallen
PhD Student, University of Toronto, Rotman School of Management