This instalment of Corporate Governance
Quarterly asks whether investors are interested in anything
more than the bottom line
There is ample market evidence that voting is not important
to most investors in publicly traded companies. When companies
have both voting and non-voting stock listed, the non-voting
shares often trade at higher prices than the voting shares.
When companies have both shares that carry a single vote (one
vote per share) and multiple vote (usually five or 10 votes per
share) listed, because there are usually more of the former
available for trading than the latter, it is common for the
multiple vote shares to trade at a 10% or greater discount to
the price of the single vote shares.
Clearly, the importance of voting changes depending on the
type of stockholder. To a great extent it is aligned to the
stockholder's status as an owner or (only) a short-term