Corporate governance – demutualization of stock exchanges: an analysis of its benefits
Autor(a) principal: | |
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Data de Publicação: | 2009 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10071/1702 |
Resumo: | The stock exchange reality of today is very different to that one our ancestors experienced. Today, due to a variety of reasons, such as competitive pressures, stock exchanges are no longer structured as cooperative venues. Instead, today, trading venues are for-profit enterprises, whose capital is detained by external ownership. This new structure is a result of demutualization. Demutualization consists of the introduction of a residual claimant into the exchange – which maximizes the venues’ value. Furthermore, demutualization is aligned with a structure change, which brings into the exchange a governing board and a separation of ownership and membership rights. Due to an exponential growth of this structure change in the mid 1990s, I was intrigued and, consequently, analysed the benefits of demutualization. Through an analysis of four distinct exchanges: two from Europe, one from North America and one from Asia, I objectively analyse a set of financial and volume indicators, and the evolution of ownership. Through this analysis, I conclude that demutualization is valueenhancing, in the sense that revenues increase, costs become efficient, and the overall performances of the sample exchanges seemingly improve. Moreover, I conclude that competitive pressures tend to reduce the volumes of listed companies in the exchange and, given demutualization, the trend is reversed. Through the analyses of the structure of ownership, I positively correlate the growth of the shareholder base to improved performances. Lastly, I link demutualization with mergers and acquisitions. |
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Corporate governance – demutualization of stock exchanges: an analysis of its benefitsCompetitionDemutualizationValue-enhancementPerformanceConcorrênciaDesmutualizaçãoValorDesempenhoThe stock exchange reality of today is very different to that one our ancestors experienced. Today, due to a variety of reasons, such as competitive pressures, stock exchanges are no longer structured as cooperative venues. Instead, today, trading venues are for-profit enterprises, whose capital is detained by external ownership. This new structure is a result of demutualization. Demutualization consists of the introduction of a residual claimant into the exchange – which maximizes the venues’ value. Furthermore, demutualization is aligned with a structure change, which brings into the exchange a governing board and a separation of ownership and membership rights. Due to an exponential growth of this structure change in the mid 1990s, I was intrigued and, consequently, analysed the benefits of demutualization. Through an analysis of four distinct exchanges: two from Europe, one from North America and one from Asia, I objectively analyse a set of financial and volume indicators, and the evolution of ownership. Through this analysis, I conclude that demutualization is valueenhancing, in the sense that revenues increase, costs become efficient, and the overall performances of the sample exchanges seemingly improve. Moreover, I conclude that competitive pressures tend to reduce the volumes of listed companies in the exchange and, given demutualization, the trend is reversed. Through the analyses of the structure of ownership, I positively correlate the growth of the shareholder base to improved performances. Lastly, I link demutualization with mergers and acquisitions.A realidade bolsista a que hoje assistimos é distinta daquela presenciada noutros tempos. Hoje, resultantes de inúmeros factores, dos quais enalteço o crescimento da concorrência, as bolsas de valores já não são estruturadas como entidades cooperativas. Presentemente, as bolsas são empresas que procuram e lucro e cujo capital é detido por accionistas. Esta nova estrutura veio como consequência do processo de desmutualização. Este processo mais não é que a introdução de um agente que maximiza valor. Há a introdução de um órgão governativo dentro da bolsa, assim como uma separação dos direitos de membros e accionistas. Desde a última década do século passado, o mundo económico tem presenciado um forte crescimento do processo de desmutualização, pelo que, intrigado, tentei analisar o cerne da questão e os seus benefícios. Para examinar, escolhi analisar quatro bolsas de realidades distintas: duas entidades Europeias, uma bolsa Norte Americana e outra Asiática. Após a análise, concluí que esta mudança de estrutura é promotora de valor, uma vez que, após a desmutualização, as receitas crescem, os custos tornam-se eficientes e, na generalidade, há um melhor desempenho geral de cada bolsa. Concluí também, que o efeito concorrência é negativo para o número de empresas listadas em cada bolsa. Contudo, após a desmutualização, esta tendência inverte-se. Outra das minhas conclusões prende-se com o facto de haver uma relação positiva entre melhores desempenhos da bolsa e maior volume the accionistas. Por último, concluí que o processo de desmutualização está também ligado a associações e aquisições entre bolsas.2010-05-07T14:55:39Z2009-01-01T00:00:00Z20092009-05info:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfapplication/octet-streamhttp://hdl.handle.net/10071/1702engSá, Jaime Contreras de Passos Homem deinfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-11-09T17:59:08Zoai:repositorio.iscte-iul.pt:10071/1702Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T22:30:58.219099Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Corporate governance – demutualization of stock exchanges: an analysis of its benefits |
title |
Corporate governance – demutualization of stock exchanges: an analysis of its benefits |
spellingShingle |
Corporate governance – demutualization of stock exchanges: an analysis of its benefits Sá, Jaime Contreras de Passos Homem de Competition Demutualization Value-enhancement Performance Concorrência Desmutualização Valor Desempenho |
title_short |
Corporate governance – demutualization of stock exchanges: an analysis of its benefits |
title_full |
Corporate governance – demutualization of stock exchanges: an analysis of its benefits |
title_fullStr |
Corporate governance – demutualization of stock exchanges: an analysis of its benefits |
title_full_unstemmed |
Corporate governance – demutualization of stock exchanges: an analysis of its benefits |
title_sort |
Corporate governance – demutualization of stock exchanges: an analysis of its benefits |
author |
Sá, Jaime Contreras de Passos Homem de |
author_facet |
Sá, Jaime Contreras de Passos Homem de |
author_role |
author |
dc.contributor.author.fl_str_mv |
Sá, Jaime Contreras de Passos Homem de |
dc.subject.por.fl_str_mv |
Competition Demutualization Value-enhancement Performance Concorrência Desmutualização Valor Desempenho |
topic |
Competition Demutualization Value-enhancement Performance Concorrência Desmutualização Valor Desempenho |
description |
The stock exchange reality of today is very different to that one our ancestors experienced. Today, due to a variety of reasons, such as competitive pressures, stock exchanges are no longer structured as cooperative venues. Instead, today, trading venues are for-profit enterprises, whose capital is detained by external ownership. This new structure is a result of demutualization. Demutualization consists of the introduction of a residual claimant into the exchange – which maximizes the venues’ value. Furthermore, demutualization is aligned with a structure change, which brings into the exchange a governing board and a separation of ownership and membership rights. Due to an exponential growth of this structure change in the mid 1990s, I was intrigued and, consequently, analysed the benefits of demutualization. Through an analysis of four distinct exchanges: two from Europe, one from North America and one from Asia, I objectively analyse a set of financial and volume indicators, and the evolution of ownership. Through this analysis, I conclude that demutualization is valueenhancing, in the sense that revenues increase, costs become efficient, and the overall performances of the sample exchanges seemingly improve. Moreover, I conclude that competitive pressures tend to reduce the volumes of listed companies in the exchange and, given demutualization, the trend is reversed. Through the analyses of the structure of ownership, I positively correlate the growth of the shareholder base to improved performances. Lastly, I link demutualization with mergers and acquisitions. |
publishDate |
2009 |
dc.date.none.fl_str_mv |
2009-01-01T00:00:00Z 2009 2009-05 2010-05-07T14:55:39Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10071/1702 |
url |
http://hdl.handle.net/10071/1702 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
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info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
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application/pdf application/octet-stream |
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reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
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RCAAP |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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