Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/175034
Authors: 
Betzer, André
van den Bongard, Inga
Goergen, Marc
Year of Publication: 
2017
Series/Report no.: 
Schumpeter Discussion Papers 2016-008
Abstract: 
A change in the index selection rules of Deutsche Börse provides a unique opportunity to investigate the drivers behind the decision to a bolish dual-class shares. As of June 2002, selection is based on the market capitalization of the free-float of the more liquid share class rather than the overall market capitalization. Hence, firms have had to reassess the benefits from their dual-class shares by weighing them against the cost from foregone index weight associated with having two share classes. Our findings suggest that index membership significantly affects the controlling shareholder's motivation to unify preferred and common stock.
Subjects: 
private benefits of control
dual-class stock
ownership structure
corporate governance
JEL: 
G30
G32
Persistent Identifier of the first edition: 
Document Type: 
Working Paper
Social Media Mentions:

Files in This Item:
File
Size
475.19 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.