This Research Spotlight provides a summary of the academic literature on how dual-class share structures influence firm value and corporate governance quality. It reviews the evidence of: The relation between dual-class shares and governance quality, the relation between dual-class shares and tax avoidance, and the relation between dual-class shares and firm value and performance. This Research Spotlight expands upon issues introduced in the Quick Guide The Market for Corporate Control.
Copyright held by David F. Larcker and Brian Tayan. Further inquiries about reproduction and use should be directed to the Corporate Governance Research Initiative.
