Financial Tunneling: Shareholder Protection and Wealth Changes During Two Decades of Capital Management Activities in Australia

Company transactions such as dividend payouts, share buybacks and rights issues change the capital base of the company, but do not always result in equitable treatment of shareholders. Large and powerful groups of shareholders, such as institutions, may influence companies to undertake transactions that result in expropriation of minority shareholder wealth. The effect of institutional ownership on the value (and behaviour) of Australian companies will be studied to determine the extent of minority shareholder wealth expropriation, identify causes and drivers of such transactions, and estimate their effects on corporate governance structures and shareholder wealth for participating companies. Corporate governance solutions will be studied.