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Similarly traded securities: Greek common vs. preferred stock
Author(s) -
Milonas Nikolaos T.
Publication year - 2000
Publication title -
european financial management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.311
H-Index - 64
eISSN - 1468-036X
pISSN - 1354-7798
DOI - 10.1111/1468-036x.00128
Subject(s) - common stock , shareholder , market liquidity , voting , dividend yield , stock (firearms) , volatility (finance) , stock dilution , economics , monetary economics , econometrics , shares outstanding , financial economics , business , dividend , stock market , cost price , finance , dividend policy , geography , corporate governance , context (archaeology) , archaeology , politics , political science , law
This paper examines the price spread between voting (common) and non‐voting (preferred) stocks during the period 1990–95 for a sample of 55 Greek companies. Because in Greece preferred stocks are not essentially different from common stocks, a number of hypotheses were tested to explain the observed differences. The data reveal an average spread of 27.5% for the entire period which, however, varies across years considerably. In cross‐sectional regressions it was found that the volatility of common stock returns, the liquidity of common shares relative to preferred shares, the ownership concentration, and the minimum dividend yield guaranteed to preferred stockholders explain a significant portion of the spread.