Whereas the agency theory predicts that dual-class shares decrease firm performance, the stewardship theory predicts that dual-class shares increase firm performance. The cumulative findings on the performance consequences of dual-class shares have been weak and/or inconclusive. Because...

Competitive advantage is typically based on a unique nexus of firm-specific investments that creates inimitable quasi-rents. As writing complete contracts on how to distribute the quasi-rents is impossible, stakeholders may underinvest in firm-specific assets to avoid the hold-up risk. This...