The Life Cycle of Dual Class Firms

Research output: Contribution to conferencePaperpeer-review


We examine an extensive matched sample of U.S. dual and single class firms in 1980-2015 from the time of their IPO, and document that the valuation difference between dual and single class firms varies over their life cycle. On average, around the time of the IPO, dual class firms have higher valuations than single-class firms. Over time, this valuation premium tends to dissipate, whereas the difference between voting and equity stakes of the controlling shareholders of dual class firms (the "wedge") tends to increase. Further tests examine firm survival and the desirability of a sunset provision for dual class structures.
Original languageAmerican English
StatePublished - 2018
EventEuropean Financial Management Association - , Italy
Duration: 26 Jun 201829 Jun 2018


ConferenceEuropean Financial Management Association


Dive into the research topics of 'The Life Cycle of Dual Class Firms'. Together they form a unique fingerprint.

Cite this