The Voting Premium, Defined as the Total Vote Value (Value

question 95

Multiple Choice

The voting premium, defined as the total vote value (value of a vote times the number of votes) as a proportion of the firm's equity market value is only about 2 percent in the United States and 36 percent in Mexico, suggesting that in Mexico,

• A)dominant shareholders extract substantial private benefits of control.
• B)dominant shareholders overpay and thus fail to extract substantial private benefits.
• C)minority shareholders share in the private benefits of control.
• D)none of the above

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Definitions:

In-group

A social group toward which an individual feels loyalty and respect, often distinguishing members from those in the out-group.

More Responsibility

Refers to an increase in the duties or tasks assigned to an individual, typically implying greater accountability.

Leader

A person who influences a group towards achieving a common goal.

Psychometric Properties

Refers to the attributes such as reliability and validity that evaluate the quality of psychological tests or measurements.