Dual class, Investment, and firm value

• Main Authors: Bing-Jen Hsiao, 蕭昺禎
• Other Authors: I-Ju Chen
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/nz33vk

碩士 === 元智大學 === 財務金融暨會計碩士班(財務金融學程) === 106 === This study aims to examine the relationship between the dual class of ownership structure, firm investment, and firm valuation. We first discuss the advantages and disadvantages of dual class companies and then propose the research hypotheses. We suggest that the relation between firms with dual class ownership and firm investment is an empirical question and should be investigated. We collect data of S&P1500 firms in the United States from 1994 to 2016 and manually check if firms conduct dual class ownership structure. We also follow Eisdorfer(2011) to measure the investment efficiency. Our empirical findings suggest that a dual class firm has significantly lower investment efficiency and firm value.However, a dual class firms is observed to have higher investment efficiency when it has higher growth opportunities or is in higher competitive industries. in