Journal of Finance and Investment Analysis

Estimating Preferred Shares with Regard to the Possibilities of Gaining the Voting Right by their Holders

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• Abstract

  This article views the techniques to estimate preferred shares, the holders of which have acquired the voting right for the shareholder’s meeting by nonpayment of dividends on these shares. The author of this paper attempts to show regard to the option factor, which reflects the possibilities to gain the voting right by preferred shareholders, directly in special calculation models. In addition, the article proposes the criterion of decision making by majority (controlling) shareholders on the reasonability of either the payment or nonpayment of dividends to minority shareholders.