Are loyalty shares an effective antidote against short-termism?

By Marco Fasan, Chiara Mio, Elise Soerger Zaro

Corporate short-termism is arguably one of the main causes of economic, social and environmental unsustainability. This paper studies the effectiveness of loyalty shares - shares granting extra dividends or voting rights to shareholders holding them for a specified period of time - in limiting short-termism. The results confirm that, after loyalty shares issuance, companies manage earnings to a lower extent. Interpretation of the evidence supports the main hypothesis that loyalty shares can serve as an antidote against short termism.

• Format: Paperback
• Language: English
• ISBN: 6200783977
• ISBN13: 9786200783974
• Release Date: March 2020
• Publisher: LAP Lambert Academic Publishing
• Length: 52 Pages
• Weight: 0.20 lbs.
• Dimensions: 0.1" x 6.0" x 9.0"