Dual-Class Firms: Evidence from IPOs of Chinese Firms Cross-Listed on US Exchanges

作者：Abdullah^*; Zhou Jia'nan; Shah, Muhammad Hashim

来源：Emerging Markets Finance and Trade, 2017, 53(7): 1691-1704.

DOI：10.1080/1540496X.2017.1307103

• board independency
• Chinese cross-listed firms
• determinants of dual-class firms
• initial public offering
• underpricing

We compare Chinese single with dual-class firms cross-listed on US exchanges. We find that dual-class firms are larger in terms of assets and sales, possess ownership concentration, and have higher institutional ownership. Chinese firms in IT industry are especially likely to use dual-class structure. We find that, contrary to the literature, dual-class firms underprice 30.42% more and firm underprices less when governance practices are adequate. Insiders need to bear underpricing cost for retaining control. Interestingly, we find that dual-class firms hire more independent directors to show commitment toward shareholder's rights but control them through CEO Chairman Duality and superior voting rights.

• 出版日期2017
• 单位西南交通大学