Boehmer, Ekkehart; Sanger, Gary; Varshney, Sanjay - In: Journal of Economics and Finance 28 (2004) 1, pp. 117-131
Given the decision to create a second class of stock through a dual-class structure, we propose that management is more (less) likely to create a liquid secondary market for both classes of shares the lower (higher) its willingness to tie its personal wealth to firm performance. If market makers...