The paper proposes an economic reading of the new opt-in regime introduced by the reform of Italian Law on Finance. The thesis is that the effectiveness of capital market reforms depends not only on the permanent benefits they introduce, but also on the costs necessary for their adoption. In this perspective, the right of withdrawal is interpreted as a put option embedded in the share, the value of which represents, for SMEs already listed, a cost of entry to the new regime. The trade-off can be particularly relevant for banks and insurance companies, where withdrawal can affect regulatory capital.
Transition costs and capital market reforms: The case of the new opt-in regime and the impact on listed SMEs
Andrea Beltratti (REVO Insurance), Nicola Bortolazzi (REVO Insurance), Pietro Martignoni (REVO Insurance), Stefano Semolini (REVO Insurance)
