Download or read book Mispricing of Dual Class Shares written by Paul H. Schultz and published by . This book was released on 2009 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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 from TAQ shows that investors shift their trading patterns to take advantage of gaps. Contrary to common perception, long-short arbitrage plays a minor part in eliminating gaps, and one-sided trades correct most of them. We also show that the more liquid share class is usually responsible for the price discrepancies. Our findings have implications for the literature on risky arbitrage and asset pricing more generally.
Download or read book Organized Exchanges and the Regulation of Dual Class Common Stock written by Daniel R. Fischel and published by . This book was released on 1986 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Social Costs and Benefits of Dual class Stock written by Gregory H. Shill and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: Dual-class stock creates a two-tiered ownership structure that allows new investors to buy a piece of a fast-growing company, with just one catch: thy become second-class shareholders who have little or no voting power in the corporation. A rich literature debates whether this arrangement, which cements founder control, is truly optimal for investors. This Article is the first to identify an entirely different type of problem: the structure's social costs. This Article makes three contributions. First, it adds an essential yet missing dimension to the understanding of dual-class stock. the structure's social costs (or negative externalities). Second, it connects the concept of social cost to two developments this century that have supercharged corporate influence on American Ilfe: the rise of dual-class technology companies like Google and Facebook and the widened scope of corporate constitutional rights under U.S. Supreme Court caselaw. The interaction of these changes gives two men (at Google) or even just one (at Facebook) a constitutional beachhead from which thy can deploy vast corporate resources for personal as well as business ends. The Article then develops a poli playbook that is responsive to these problems yet grounded in a fair assessment of the structure's benefits. These solutions can inform approaches to other externalities of the corporation as well. These contributions are both theoretical and practical in nature. They aim to curb the social costs of dual-class stock (and, optimistically, to nurture its social benefits) while preserving its private appeal to founders and investors.
Download or read book The Case for Dual Class of Shares written by and published by . This book was released on 2019 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dual Class Shares Firms and Seasined Equity Offerings written by Birgül Caramanolis-Çötelli and published by . This book was released on 1995 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Value of Voting Rights to Majority Shareholders written by Shmuel Hauser and published by . This book was released on 2009 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: We study 84 dual class stock uni. cations, where superior vote shareholders gave up their superior voting status (all firm stocks became quot;one share one votequot;) and received (in most cases) compensation in the form of additional shares. Unifications are essentially intra-firm transactions of voting rights, and afford observation of the intra-firm assessed price of vote. The price of vote in unifications: 1) increases with the percentage vote lost by the majority shareholders, 2) is higher in family-controlled firms, 3) decreases with institutional investor holdings, and 4) is similar to the quot;outsidequot; price of vote implicit in the market prices of stocks.quot.
Download or read book Value Effects of a Dual class Share Structure and Statutory Limitations to Voting Rights Transferability written by Thaddäus Lenzin and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies stock market reactions to a Swiss court ruling on the sale of shares in a Swiss company from October 2016. The study includes a hand-collected sample of 155 firms listed in Switzerland. The ruling represents a natural experiment-type situation to investigate price effects on dual-class firms. The study avoids endogeneity concerns, which are common in the literature on equity capital structures. The study finds evidence of statistically significant positive price reactions for shares of firms that have two of Sika's corporate governance characteristics: (1) dual-class equity structure; and (2) one shareholder controlling 50% or more of voting rights. On average, firms with these characteristics produced a statistically significant positive open-close return on the court ruling announcement. I provide evidence that the impact of the court ruling operates independently of statutory clauses, such as voting cap and opting-out. I interpret that these results show an increased perception of protection for outside shareholder of dual-class firms. The findings are not as robust when I estimate results for sub-sample tests or in the context of a long-term regression model. I also test the announcement of the sale as a reverse event. I find evidence for shares of firms with a shareholder holding at least 50% of voting rights or more to react negatively to the sale, which is the expected opposite reaction to the court ruling, while the equity capital structure of firms did not affect the stock-price reaction.
Download or read book Dual Class Common Shares and Demand Curves for Stocks written by Joseph Howard Osnoss and published by . This book was released on 2000 with total page 170 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dual Class Shares written by CFA Institute and published by . This book was released on 2018 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Dual Class Stock Unifications and Shareholders Expropriation written by Marco Bigelli and published by . This book was released on 2004 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: An increasing number of firms with dual class shares are deciding to unify their shares around the world. In the most common type of stock unification a non-voting share can be converted into a voting share. In most countries either the price differential between the two classes of shares is low or a form of compensation for voting shareholders is provided. Italian stock unifications see the highest value of voting rights and no form of compensation for voting shareholders. I observe the 43 Italian stock unifications made in the 1974-2003 period and I develop a model that quantifies their wealth effects on the two classes of shares. Stock unifications can be a form of expropriation of minority voting shareholders, as confirmed by five case studies where majority shareholders hedge or even take advantage of such unifications by engaging in the following activities some months before the unification decision: buying relevant blocks of nv-shares, selling voting shares or approving stock option plans on nv-shares. At the stock unification announcement the price of a voting share in the five case studies dropped by a minimum of -4,26%, to a maximum of -10,41% confirming that dual class unifications can expropriate minority-voting shareholders to the benefit of the controlling shareholder and quot;luckyquot; minority nv-shareholders.
Download or read book Comment Letters to NASDAQ and NYSE written by Bernard S. Sharfman and published by . This book was released on 2019 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt: I am responding to the Council of Institutional Investors' (“CII”) request that the NASDAQ Stock Market (“NASDAQ”) and New York Stock Exchange amend its listing standards to require companies seeking to go public with dual class shares (classes of common stock with unequal voting rights) to include in their certificates of incorporation a time-based sunset provision (a forced unification of shares into one share structure with equal voting rights after a certain period of time) that must go into effect no more than seven years after the initial public offering (IPO) unless the minority shareholders vote to extend up to an additional seven years. These letters (both letters have been combined into one document) argue that such a mandatory provision would be extremely unwise and harmful to our most important public companies and their shareholders, current as well as future. As a creation of private ordering, the absence of time-based sunset provisions in dual class share structures serves a significant value enhancing purpose. It prevents the risk that a pre-mature and therefore suboptimal unification of shares may occur. This risk has so far been ignored by those advocating for the implementation of a mandatory time-based sunset provision.
Download or read book Advanced Macroeconomics written by Patrick Minford and published by Edward Elgar Publishing. This book was released on 2019 with total page 578 pages. Available in PDF, EPUB and Kindle. Book excerpt: This is a newly revised second edition of a key macroeconomic textbook. After explaining the historical development of the subject, they show how rational expectations are handled in macro models. The importance of structural micro-founded models is explained, with key examples of such structural models examined in detail and with extensions to the open economy; policy implications are highlighted throughout. Methods for testing these models against macro data behaviour are explained, detailing the latest evidence on these models' success.
Download or read book Investment Philosophies written by Aswath Damodaran and published by John Wiley & Sons. This book was released on 2012-06-22 with total page 615 pages. Available in PDF, EPUB and Kindle. Book excerpt: The guide for investors who want a better understanding of investment strategies that have stood the test of time This thoroughly revised and updated edition of Investment Philosophies covers different investment philosophies and reveal the beliefs that underlie each one, the evidence on whether the strategies that arise from the philosophy actually produce results, and what an investor needs to bring to the table to make the philosophy work. The book covers a wealth of strategies including indexing, passive and activist value investing, growth investing, chart/technical analysis, market timing, arbitrage, and many more investment philosophies. Presents the tools needed to understand portfolio management and the variety of strategies available to achieve investment success Explores the process of creating and managing a portfolio Shows readers how to profit like successful value growth index investors Aswath Damodaran is a well-known academic and practitioner in finance who is an expert on different approaches to valuation and investment This vital resource examines various investing philosophies and provides you with helpful online resources and tools to fully investigate each investment philosophy and assess whether it is a philosophy that is appropriate for you.
Download or read book Fintech with Artificial Intelligence Big Data and Blockchain written by Paul Moon Sub Choi and published by Springer Nature. This book was released on 2021-03-08 with total page 306 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book introduces readers to recent advancements in financial technologies. The contents cover some of the state-of-the-art fields in financial technology, practice, and research associated with artificial intelligence, big data, and blockchain—all of which are transforming the nature of how products and services are designed and delivered, making less adaptable institutions fast become obsolete. The book provides the fundamental framework, research insights, and empirical evidence in the efficacy of these new technologies, employing practical and academic approaches to help professionals and academics reach innovative solutions and grow competitive strengths.
Download or read book The Handbook of Board Governance written by Richard Leblanc and published by John Wiley & Sons. This book was released on 2020-04-06 with total page 1472 pages. Available in PDF, EPUB and Kindle. Book excerpt: The revised new edition of the must-read guide for executives—provides comprehensive coverage of topics in corporate governance by leading subject-matter experts The Handbook of Board Governance is the marketing-leading text on public, nonprofit, and private board governance. Providing comprehensive, in-depth coverage, this unique text represents a collaboration of internationally-recognized academics and prominent organization directors, executives, managers, and advisors. Contributors include Ariel Fromer Babcock, Robert Eccles, Alice Korngold, Ellie Mulholland, Michael Useem, Elizabeth Valentine and John Zinkin. Practical, expert guidance enables readers to understand value creation and the strategic role of the board, risk governance and oversight, audit and compensation committee effectiveness, CEO succession planning, and other diverse board duties and responsibilities. Now in its second edition, the Handbook offers substantial updates and revisions reflecting contemporary trends, practices, and developments in board governance. New content includes discussions of pressing issues related to climate change, examination of information technology and cybersecurity challenges, and recent tax legislation that will impact executive compensation. Editor Dr. Richard Leblanc—an award-winning teacher, professor, lawyer, management consultant, and specialist on boards of directors—integrates practical experience and academic rigor to assist readers: Build and strengthen engaged and collaborative leadership in the boardroom Recognize the role and responsibilities of a well-functioning governing board Risk governance, assurance, and the duties of directors Keep pace with new trends in board governance and shareholder responsibility Measure performance and align performance measurement to executive pay Understand information technology governance, sustainability governance, and the different forms of governance Highly relevant to board and committee members regardless of sector or industry, The Handbook of Board Governance, 2nd Edition is an invaluable source of knowledge on all aspects of corporate and organization governance.
Download or read book Behavioral Finance in the Digital Era written by Elżbieta Kubińska and published by Taylor & Francis. This book was released on 2024-01-03 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt: Due to swift technological change and the resultant digital revolution, a wide range of new digital financial products and services have emerged in the financial markets, as witnessed in the context of the FinTech sector, the economics of blockchain and NFT issuance. This book takes an in-depth look at the challenges faced by individuals making investment decisions in a rapidly changing financial world and presents a concise and thorough overview of the multifaceted approach to investment and savings behavior. It explores behavioral digital finance, referencing the latest theories in economic psychology and financial markets and provides an analysis of the process of saving and investing in the context of our new digital reality, where an understanding of human – AI interaction, its benefits and threats is extremely important. It combines an accessible overview of classical and new behavioral theories, models of financial decision making as well as an analysis of the new trends in financial decision making. Special attention is given to financial decision support systems and the role of financial advice services, which are of growing importance, due to their increasing complexity and difficulty. The book combines theoretical considerations and wide-reaching empirical analyses from a representative sample of international respondents. It deals with the individual approach to human risk-taking, and human – AI interaction, its benefits, and threats. The book explores how people react to algorithms, what drives algorithm aversion and appreciation, and how understanding of those mechanisms can be employed to improve financial advisory systems, and also considers the impact of the Covid-19 pandemic on financial behavior.
Download or read book An Assessment of Dual Class Shares in Brazil written by Pedro Matos and published by . This book was released on 2017 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
