Shareholders' approval rates on M&A deals are informative, because they are predictive of the acquirer's post-merger operating performance. Since the passing of the deal is salient information while the specific approval rate is not, investors may misprice the detailed voting outcome due to...

Exchanges and index providers increasingly push firms to equalize shareholder voting rights. We explore the potential harm arising from dual-class structures by studying the identity and returns of minority shareholders. First, we find that sophisticated investors disproportionately own...

In this article, the authors propose a strategy that exploits significant deviations from parity between the two classes of shares for dual-class firms. The strategy involves taking a short position in one class and a long position in the other class, depending on whether the deviation is above...