Shareholder agreements and firm value: Evidence from French listed firms
Belot, François (2008), Shareholder agreements and firm value: Evidence from French listed firms, EFMA 208, 2008-06, Athènes, Grèce
TypeCommunication / Conférence
Conference titleEFMA 208
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Abstract (EN)In listed companies, some shareholders can be signatories to agreements that govern their relations. This paper investigates the effects of such agreements on the valuation of firms. I use a sample of French firms that is well suited for my analysis insofar as French law requires the disclosure of the shareholder agreements’ clauses. In line with previous literature, a negative relationship between firm value and the dispersion of voting rights across major shareholders is observed. However, the existence of a shareholder agreement tends to offset this negative effect. This countervailing effect is more pronounced when a “concerted action” provision is in force and/or the contracting shareholders are of the same type. Shareholder agreements thus appear as efficient coordination mechanisms rather than expropriation mechanisms.
Subjects / KeywordsLarge Shareholders; Shareholder Agreements; Corporate Governance
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