Dual Class Shares, Performance and Ownership Structure of Companies in Developed and Emerging Capital Markets

In this work, we analyzed the effect of stock duality on company performance and ownership structure. In order to analyze the data more in-depth, we considered whole data, compared results for firms on emerging and developed markets, firms on emerging markets cross-listed on developed markets stock exchanges, technological and non-technological companies, low and high-leveraged companies, low and high-value companies. We concluded that duality has a positive effect on firm performance in general and is more preferable for technological companies in terms of market-based measures, for low-leveraged and low-value companies in terms of both operating and market-based performance measures. In terms of ownership structure, the results show that there is a positive relation between stock duality and share of individuals in the company and negative with the share of institutions.