Are loyalty shares an effective antidote against short-termism?. Empirical evidence from Italy

      Аннотация: Corporate short-termism is arguably one of the main causes of economic, social and environmental unsustainability. This paper studies the effectiveness of loyalty shares – shares granting extra dividends or voting rights to shareholders holding them for a specified period of time - in limiting short-termism. The results confirm that, after loyalty shares issuance, companies manage earnings to a lower extent. Interpretation of the evidence supports the main hypothesis that loyalty shares can serve as an antidote against short termism.

Ключевые слова: corporate governance, loyalty shares, Earnings Management, short termism, sustainability