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...

We create a novel dataset to examine the nature and determinants of dual-class IPOs. We document that dual-class firms have different types of controlling shareholders and wedges between voting and economic rights. We find that the founders' wedge is largest when founders have stronger...

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...