Work

Corporate control: Persistence and the shifting role of control-enhancing mechanisms in Italian listed firms (1978–2018)

Year: 2025

Type: article

Abstract: This paper analyses the evolution of ownership and control of non-financial listed firms in Italy from 1978 to 2018. Corporate control is persistent in the Italian stock market, and this is a constant trait across time periods. Instead, ownership has changed over time. The use of control-enhancing mechanisms and, relatedly, the wedge has followed an irregular path. Legal and market conditions significantly influence how controlling shareholders structure their ownership and control over time. Family capitalism remains pervasive. • Corporate control is persistent, with ultimate owners consistently holding over 50 % of voting rights. • The use of control-enhancing mechanisms (CEMs) has followed a non-monotonic path. • The strengthening of control rights over cash flow rights is contingent on the prevailing legal and economic environment. • Family firms emerge as the dominant ultimate owners, followed by the State.

Source: International Review of Law and Economics

DOI: 10.1016/j.irle.2025.106260

Author: Silvia Rigamonti

Institution: Università Cattolica del Sacro Cuore

Language: English

Topic: Corporate Finance and Governance

Subfield: Accounting

Field: Business, Management and Accounting

Domain: Social Sciences

SDG: Peace, justice, and strong institutions

Open Access status: hybrid

Estimated APC paid: $2,990