Effect of News on the Voting Premium of Companies Listed on the Stockholm Stock Exchange: A Study of the Voting Premium and its response to the news releases connected to the Companies listed on the Stockholm Stock Exchange

Sammanfattning: The purpose of this paper is to find whether certain categories of news can help in explaining the daily changes in the price differential commonly found between superior and restricted voting stock, otherwise known as the voting premium. We studied the cross section and time-series of the voting premium for 22 companies listed on the Stockholm Stock Exchange. Our sample spans over a period of ten years, 1998-2008. We employ time-series and pooled data regression analysis, and supplement these with a classical event study. We have found that certain categories of news are significantly related to daily changes in the voting premium but that significance is highly dependent on the method of categorization and other specifics of the proposed approach.