Attorney Robert Frenchman and Emre Car publish Corporate Actions: The Case of the Missing Billions
The problem is massive. It is not a potential problem. It is a problem that is happening now. Asset managers are failing to optimize corporate action decisions on a global scale, which has resulted, and is continuing to result, in significant losses to beneficial owners. We estimate these losses in Section I of this White Paper. The data show, in scrip dividends alone, aggregate losses to beneficial owners that exceed a billion dollars a year. Aggregate losses to beneficial owners resulting from undersubscribed rights offerings, likewise, exceed a hundred million dollars a year. The losses are compounding each and every day.
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