VGSF - WU Vienna - LC

Pedro Matos, University of Virginia

Campus WU D3.0.225 11:00 - 12:30

Organizer VGSF

As part of the ser­ies of the "Fin­ance Re­search Sem­inar", VGSF wel­comes Pedro Matos from the Uni­versity of Vir­ginia to present his re­search pa­per.
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Mul­ti-­Class Shares Around the World: The Role of In­sti­tu­tional In­vestors

Au­thors: Jin­hee Kim, Pedro Matos, and Ting Xu

This pa­per ex­am­ines mul­ti-­class share struc­tures around the world. Us­ing a com­pre­hens­ive sample of pub­licly lis­ted firms in 45 coun­tries over the period 2001–2016, we find that in­sti­tu­tional in­vestors ex­hibit strong aver­sion to­wards mul­ti-­class firms, in­vest­ing less in these firms and pen­al­iz­ing them through a valu­ation dis­count. The pres­ence of in­sti­tu­tional in­vestors cor­rel­ates with a higher like­li­hood of share-­class uni­fic­a­tion. These ef­fects are stronger for local (par­tic­u­larly U.S.) and act­ively man­aged in­vestors. Over­all, our pa­per high­lights the role of in­sti­tu­tional in­vestors in the cur­rent de­bate regard­ing ban­ning mul­ti-­class stocks from global stock in­dices.

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