Dual-Class Share Structures versus Staggered Boards

Yang, Shu

Dual-Class Share Structures versus Staggered Boards

Yang, Shu

Permalink

Publication Type:: Thesis
Issue Date:: 2023

Open Access

Copyright Clearance Process

Recently Added
In Progress
Open Access

This item is open access.

Adobe PDF

Download thesisAdobe PDF (1.36 MB)

View statistics

Full metadata record

Field	Value	Language
dc.contributor.author	Yang, Shu
dc.date.accessioned	2023-10-16T01:44:34Z
dc.date.available	2023-10-16T01:44:34Z
dc.date.issued	2023
dc.identifier.uri	http://hdl.handle.net/10453/172682
dc.description	University of Technology Sydney. Faculty of Business.	en_US.UTF-8
dc.description.abstract	This thesis contributes to the ongoing debate around the tradeoffs arising from antitakeover provisions, by presenting a comparative analysis using more comprehensive and accurate dual-class and staggered boards indicator variables. In particular, we find that R&D activity positively affects firm valuations for dual-class firms, but a negative effect for staggered board firms. We find that dual-class firms have a strong propensity to fund R&D by issuing new equity, whereas there is no evidence that staggered board firms use equity to fund their R&D activities. With respect to debt maturity, we observe a higher propensity among dual-class firms to fund themselves with short-maturity debt, while staggered board firms show a preference for long-maturity debt. We also find that the preference for short-maturity debt is less pronounced among innovative dual-class firms, while the situation is reversed among innovative staggered board firms. When it comes to institutional ownership, we observe that staggered board firms appear to be quite attractive to institutional investors, whereas dual-class firms seem especially unattractive to them. We also find that institutional investor aversion to dual-class firms is intensified by R&D investments, whereas R&D activity seems to have no impact on their willingness to invest in staggered board firms.	en_US.UTF-8
dc.format	Thesis (PhD)
dc.language.iso	en_US	en_US.UTF-8
dc.relation	https://opus.lib.uts.edu.au/bitstream/10453/172682/1/thesis.pdf
dc.rights	info:eu-repo/semantics/openAccess
dc.rights	The author owns the copyright in this thesis including all reproduction and reuse rights for the work. The work may not be altered without the permission of the copyright owner. Attribution is essential when quoting or paraphrasing from this thesis.
dc.rights	© 2023 Shu Yang
dc.rights	au.edu.uts.lib/cph
dc.title	Dual-Class Share Structures versus Staggered Boards	en_US.UTF-8
dc.type	Thesis
utslib.copyright.status	open_access	*

Abstract:

This thesis contributes to the ongoing debate around the tradeoffs arising from antitakeover provisions, by presenting a comparative analysis using more comprehensive and accurate dual-class and staggered boards indicator variables. In particular, we find that R&D activity positively affects firm valuations for dual-class firms, but a negative effect for staggered board firms. We find that dual-class firms have a strong propensity to fund R&D by issuing new equity, whereas there is no evidence that staggered board firms use equity to fund their R&D activities. With respect to debt maturity, we observe a higher propensity among dual-class firms to fund themselves with short-maturity debt, while staggered board firms show a preference for long-maturity debt. We also find that the preference for short-maturity debt is less pronounced among innovative dual-class firms, while the situation is reversed among innovative staggered board firms. When it comes to institutional ownership, we observe that staggered board firms appear to be quite attractive to institutional investors, whereas dual-class firms seem especially unattractive to them. We also find that institutional investor aversion to dual-class firms is intensified by R&D investments, whereas R&D activity seems to have no impact on their willingness to invest in staggered board firms.

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10453/172682