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Are liquidity and corporate control priced by shareholders? Empirical evidence from Swiss dual class shares

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  • Gardiol, Lucien
  • Gibson-Asner, Rajna
  • Tuchschmid, Nils S.

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  • Gardiol, Lucien & Gibson-Asner, Rajna & Tuchschmid, Nils S., 1997. "Are liquidity and corporate control priced by shareholders? Empirical evidence from Swiss dual class shares," Journal of Corporate Finance, Elsevier, vol. 3(4), pages 299-323, December.
    • Handle: RePEc:eee:corfin:v:3:y:1997:i:4:p:299-323
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    1. Fama, Eugene F & French, Kenneth R, 1992. "The Cross-Section of Expected Stock Returns," Journal of Finance, American Finance Association, vol. 47(2), pages 427-465, June.
    2. Brennan, Michael J. & Subrahmanyam, Avanidhar, 1996. "Market microstructure and asset pricing: On the compensation for illiquidity in stock returns," Journal of Financial Economics, Elsevier, vol. 41(3), pages 441-464, July.
    3. Bhide, Amar, 1993. "The hidden costs of stock market liquidity," Journal of Financial Economics, Elsevier, vol. 34(1), pages 31-51, August.
    4. Stulz, ReneM., 1988. "Managerial control of voting rights : Financing policies and the market for corporate control," Journal of Financial Economics, Elsevier, vol. 20(1-2), pages 25-54, January.
    5. Stulz, René M, 1995. "Foreign Equity Investment Restrictions, Capital Flight, and Shareholder Wealth Maximization," CEPR Discussion Papers 1208, C.E.P.R. Discussion Papers.
    6. Lease, Ronald C. & McConnell, John J. & Mikkelson, Wayne H., 1983. "The market value of control in publicly-traded corporations," Journal of Financial Economics, Elsevier, vol. 11(1-4), pages 439-471, April.
    7. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    8. Bergstrom, Clas & Rydqvist, Kristian, 1990. "The determinants of corporate ownership : An empirical study on Swedish data," Journal of Banking & Finance, Elsevier, vol. 14(2-3), pages 237-253, August.
    9. Zingales, Luigi, 1994. "The Value of the Voting Right: A Study of the Milan Stock Exchange Experience," The Review of Financial Studies, Society for Financial Studies, vol. 7(1), pages 125-148.
    10. Megginson, William L, 1990. "Restricted Voting Stock, Acquisition Premiums, and the Market Value of Corporate Control," The Financial Review, Eastern Finance Association, vol. 25(2), pages 175-198, May.
    11. Copeland, Thomas E & Galai, Dan, 1983. "Information Effects on the Bid-Ask Spread," Journal of Finance, American Finance Association, vol. 38(5), pages 1457-1469, December.
    12. Kyle, Albert S, 1985. "Continuous Auctions and Insider Trading," Econometrica, Econometric Society, vol. 53(6), pages 1315-1335, November.
    13. Amihud, Yakov & Mendelson, Haim, 1986. "Asset pricing and the bid-ask spread," Journal of Financial Economics, Elsevier, vol. 17(2), pages 223-249, December.
    14. Stulz, Rene M & Wasserfallen, Walter, 1995. "Foreign Equity Investment Restrictions, Capital Flight, and Shareholder Wealth Maximization: Theory and Evidence," The Review of Financial Studies, Society for Financial Studies, vol. 8(4), pages 1019-1057.
    15. Kristian Rydqvist, 1992. "Takeover Bids and the Relative Prices of Shares that Differ in their Voting Rights," CEPR Financial Markets Paper 0017, European Science Foundation Network in Financial Markets, c/o C.E.P.R, 33 Great Sutton Street, London EC1V 0DX..
    16. DeAngelo, Harry & DeAngelo, Linda, 1985. "Managerial ownership of voting rights : A study of public corporations with dual classes of common stock," Journal of Financial Economics, Elsevier, vol. 14(1), pages 33-69, March.
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    Cited by:

    1. Faccio, Mara & Lang, Larry H. P., 2002. "The ultimate ownership of Western European corporations," Journal of Financial Economics, Elsevier, vol. 65(3), pages 365-395, September.
    2. Docherty, Paul & Easton, Steve & Pinder, Sean, 2021. "Flights-to-control: Time variation in the value of a vote," Journal of Corporate Finance, Elsevier, vol. 66(C).
    3. Fan, Qingliang & Wang, Ting, 2017. "The impact of Shanghai–Hong Kong Stock Connect policy on A-H share price premium," Finance Research Letters, Elsevier, vol. 21(C), pages 222-227.
    4. Choi, Hyang Mi & Yoon, Pyung-Sig & Lim, Byungkwon, 2023. "Corporate governance and price differences between dual-class shares in Korea," International Review of Economics & Finance, Elsevier, vol. 86(C), pages 304-319.
    5. Ekkehart Boehmer & Gary Sanger & Sanjay Varshney, 2004. "Managerial bonding and stock liquidity: An analysis of dual-class firms," Journal of Economics and Finance, Springer;Academy of Economics and Finance, vol. 28(1), pages 117-131, March.
    6. Dimitrov, Valentin & Jain, Prem C., 2006. "Recapitalization of one class of common stock into dual-class: Growth and long-run stock returns," Journal of Corporate Finance, Elsevier, vol. 12(2), pages 342-366, January.
    7. Odegaard, Bernt Arne, 2007. "Price differences between equity classes. Corporate control, foreign ownership or liquidity?," Journal of Banking & Finance, Elsevier, vol. 31(12), pages 3621-3645, December.
    8. Michael E. Drew & Alastair Marsden & Madhu Veeraraghavan, 2006. "Small Firm Effect, Liquidity and Security Returns," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 5(2), pages 135-149, August.
    9. Leonce Bargeron & Michael Farrell, 2021. "The Price Effect of Stock Repurchases: Evidence from Dual Class Firms," Management Science, INFORMS, vol. 67(10), pages 6568-6580, October.
    10. Michael E. Drew & Alastair Marsden & Madhu Veeraraghavan, 2004. "Small Firm Effect, Liquidity and Security Returns: Australian Evidence," School of Economics and Finance Discussion Papers and Working Papers Series 172, School of Economics and Finance, Queensland University of Technology.
    11. Loderer, Claudio & Roth, Lukas, 2005. "The pricing discount for limited liquidity: evidence from SWX Swiss Exchange and the Nasdaq," Journal of Empirical Finance, Elsevier, vol. 12(2), pages 239-268, March.
    12. Beiner, Nicole & Gibson, Rajna, 1999. "A theoretical analysis of the liquidity risk premium embedded in the prices of voting and non-voting stocks," Journal of Corporate Finance, Elsevier, vol. 5(3), pages 209-225, September.
    13. Jörg Breitung & Christian Wulff, 2001. "Non‐linear Error Correction and the Efficient Market Hypothesis: The Case of German Dual‐Class Shares," German Economic Review, Verein für Socialpolitik, vol. 2(4), pages 419-434, November.
    14. Bigelli, Marco & Croci, Ettore, 2013. "Dividend privileges and the value of voting rights: Evidence from Italy," Journal of Empirical Finance, Elsevier, vol. 24(C), pages 94-107.
    15. Kalok Chan & Johnny K.H. Kwok, 2005. "Market Segmentation and Share Price Premium," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 4(1), pages 43-61, April.

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