Management Profiles of Capital Increases with a Premium. Evidence from Italy

The present contribution investigates the issue of shares with a premium, especially concerning those factors that influence the pricing of securities. In particular, the analysis was carried out by examining a sample of small businesses listed on the Italian Stock Exchange and showed that the phenomenon of the share premium represents a situation of considerable importance. Furthermore, the study aims to demonstrate how the share premium can perform both a compensatory or equalizing function between old and new shareholders, and an eminently financial function in favor of the company. In the case of the compensatory function, typical of older companies, the determination of the share premium measure is mainly due to the amount of the accumulated net equity, since the subscription of the new shares gives the right to participate in its benefits. In the case of the financial function, more typical of younger companies, the main purpose of the share premium is to provide the company with adequate financial resources to support its future growth.