Superior vs. Inferior Voting Shares : Price Premium or Discount?
Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
Author(s)
Related Research Unit(s)
Detail(s)
| Original language | English |
|---|---|
| Pages (from-to) | 306-318 |
| Journal / Publication | Journal of Modern Accounting and Auditing |
| Volume | 12 |
| Issue number | 6 |
| Publication status | Published - Jun 2016 |
Link(s)
| DOI | DOI |
|---|---|
| Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(790bb1ec-e79f-40c8-826d-f989dba36c77).html |
Abstract
This paper analyzes the price difference between superior voting (SV) and inferior voting (IV) shares for three dual-class firms: Farmer Mac as a big price discount case, Fox as a price similarity case, and Heico as a big price premium case. We show that the price difference is mainly affected by the control benefit, while voting power and liquidity are also relevant factors. We suggest that the control benefit can be revealed by examining share accumulation and firm performance.
Research Area(s)
- superior voting (SV), inferior voting (IV), price premium, price discount, dual classes
Citation Format(s)
Superior vs. Inferior Voting Shares : Price Premium or Discount? / He, Yan; Wang, Junbo; Wu, Chunchi.
In: Journal of Modern Accounting and Auditing, Vol. 12, No. 6, 06.2016, p. 306-318.Research output: Journal Publications and Reviews (RGC: 21, 22, 62) › 21_Publication in refereed journal › peer-review
