THE INFLUENCE OF SHAREHOLDER VOTING RIGHTS ON INTERNAL CONTROL MECHANISMS: A COMPARATIVE STUDY OF PUBLICLY TRADED FIRMS IN PORTUGAL AND UNITED KINGDOM

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Abstract

This work analyses the role of shareholder voting rights on the adoption of internal control mechanisms by firms from both a small emerging and developed economies. It also studies the influence that sector of activity and company size have on these mechanisms. The sample is comprised of publicly traded companies from Portugal and the United Kingdom. Data analysis using path analysis and multiple linear regression shows that shareholder ownership has a weak influence on control mechanisms. It also reveals that sector of activity and company size have differing influences on control mechanisms in differing contexts.

Keywords: Corporate Governance, Shareholder Voting Rights, Internal Control Mechanisms

How to cite this paper: Felício, J. A., Rodrigues, R. (2010). The influence of shareholder voting rights on internal control mechanisms: a comparative study of publicly traded firms in Portugal and United Kingdom. Corporate Ownership & Control, 7(3-3), 353-367. https://doi.org/10.22495/cocv7i3c3p3