Research on Changes in the Value of Dual-Class Share Companies Over the Life Cycle

Chengling Mao

doi:10.54097/en45c968

Authors

Chengling Mao

DOI:

https://doi.org/10.54097/en45c968

Keywords:

Corporate Governance, Firm Valuation, Dual-class Share Regime, Sunset Clauses, Agency Costs, Business Life Cycle, Tobin's Q.

Abstract

This paper adopts a quantitative research approach by using Tobin's q value to measure the value of a firm. Simultaneously, using OLS regression analysis, in which Tobin's Q is used as the dependent variable and financial performance, perpetual type, industry, and time as independent variables, to explore the factors that influence firm valuation. Research shows that organizations with sunset provisions are worth much more in the third year of their life cycle than those without them, which supports the call for sunset clauses to some extent.

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References

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