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| Type | Working Paper |
| Scope | Discipline-based scholarship |
| Title | Dual-class shares, external financing needs, and firm performance |
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| Authors |
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| Language |
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| Institution | University of Zurich |
| Series Name | SSRN |
| Number | 1773206 |
| ISSN | 1556-5068 |
| Number of Pages | 31 |
| Date | 2012 |
| Abstract Text | This paper explores the effect of dual-class shares on firm performance using a unique law change in Switzerland as a source of exogenous variation. Unlike most of the related literature we do not adopt a one-size-fits-all approach but allow the effect to vary depending on a firm’s need for external finance. Based on nine years panel data of both firms affected and unaffected by the law change, we find that dual-class shares neither harm nor benefit firm performance on average. However, dual-class shares increase firm performance if the firm requires external finance and dual-class shares decrease firm performance if the firm does not require external finance. |
| Official URL | http://ssrn.com/abstract=1773206 |
| Other Identification Number | merlin-id:7569 |
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