The rise and fall of multiple voting shares during the Interbellum.

One share, one vote is a basic principle that guarantees good protection of investors. However, the use multiple voting shares (MVS) increases all over the world. In this paper, we investigate the rise and fall of MVS in Belgium during the Interbellum. As from the 1920s, MVS became increasingly popular and in 1934 they are legally abolished. In order to enhance our understanding of MVS, we will investigate which kind of firms adopt MVS, how the adoption of MVS affects stock performance and how shareholder reacted to the 1934 abolishment act.

Keywords:FINANCIAL HISTORY

Disciplines:Financial economics, Economic history