Abstract: this is the first paper to examine the microstructure of how mispricing is created and resolved we study dual class-shares with equal cash-flow rights, and show that a simple trading strategy exploiting gaps between their prices appears to create abnormal profits after transactions costs trade data. So, the question is, what's the impact of dual-class ownership on a company's fundamentals and performance (to learn more, see the abcs of mutual fund classes) tutorial: stock basics what are dual-class shares when the internet company google went public, a lot of investors were upset that it issued a.
We think the silence comes from the fact that dual-class share companies have actually been good performers over a long time frame and that the structure allows good management teams to drive the strategic direction of a company without the distractions from parties more concerned about short-term.
Global perspectives on accounting education (13): 21-35 eriksen, s and b busta 2011 wrigley's dual-class equity strategy global perspectives on accounting education (8): 1-6 finger, c a 2010 using judgment to measure the allowance for doubtful accounts global perspectives on accounting education (7): 9-17.
Dual-class shares continue to draw interest from company executives considering an initial public offering (ipo) can be intoxicating, but the potential benefits and disadvantages of a dual-class listing should be carefully considered to align the company's long-term strategy and its capital requirements.
Aggressive strategies an analysis of “dual- class” companies offers a way around this problem the typical dual-class company offers one class of common stock with superior voting rights and one class of common stock with of ownership may induce them to pursue less risky strategies than outside investors would.