שווייה של שליטה בחברה ציבורית בעקבות רפורמות מקיפות בממשל התאגידי הישראלי

Translated title of the contribution: The Value of Control Following Extensive Corporate Governance Reforms in Israel

אילון בלום, שרון חנס, רויטל יוסף, בני לאוטרבך

Research output: Contribution to journalArticlepeer-review

Abstract

Does Israeli law restrain controlling shareholders? We examine the impact of the Israeli corporate governance reforms of the past twenty years – starting with the enactment of the Companies Law in 1999 – on the private benefits of control in publicly traded companies. We use the premium paid in control-transfer transactions to estimate the value of control for controlling shareholders. In a relatively large sample of 60 full-control-transfer transactions we find that during the sample period (2001-2019) the average value of control of an Israeli public company is about 10% and has decreased by about two-thirds relative to its value in earlier periods. The erosion of control value is evident even within our sample period: the estimated median value of control in the early decade of our sample period (2001-2010) is 9.9% of the company’s market value of equity, but only 5.5% in the later decade (2011-2019). It appears that currently, following all the reforms, the Israeli market does not exhibit high or excessive private benefits of control. Lastly, we also observe and document a significant negative correlation between the size of the company and the value of control, when control is measured as a percentage of the company’s market value.
Translated title of the contributionThe Value of Control Following Extensive Corporate Governance Reforms in Israel
Original languageHebrew
Pages (from-to)769-805
Number of pages37
Journalמשפטים
Volumeנ"א
Issue number3
StatePublished - 2022

IHP Publications

  • ihp
  • Bribery
  • Business
  • Corporate governance
  • Corporation law
  • Corporation law -- Israel
  • Delegated legislation
  • Law enforcement
  • Municipal corporations
  • Value
  • אכיפת החוק
  • דיני חברות
  • חברות ציבוריות
  • חוק החברות, התשנ"ט- 1999
  • טובות הנאה
  • ממשל תאגידי
  • עסקות
  • ערך (כלכלה)
  • רגולציה (מדיניות ציבורית)
  • שליטה (חברות)

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