Share-holders are usually entitled to two different rights : a right to vote, and a right to receive cash-flows. Although the general rule is “one share/one vote”, it is possible to introduce some differences between shares, which is likely to affect the corporate governance of the firm. Using results of existing theoretical and empirical literature, we try to analyze the motivations of firms issuing dual-class shares.
CHARLETY-LEPERS, P. (1996). Nature des titres et performance des entreprises. ESSEC Business School.