Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 1 of 1
Full-Text Articles in Securities Law
The Problem Of Sunsets, Jill E. Fisch, Steven Davidoff Solomon
The Problem Of Sunsets, Jill E. Fisch, Steven Davidoff Solomon
All Faculty Scholarship
An increasing percentage of corporations are going public with dual class stock in which the shares owned by the founders or other corporate insiders have greater voting rights than the shares sold to public investors. Some commentators have criticized the dual class structure as unfair to public investors by reducing the accountability of insiders; others have defended the value of dual class in encouraging innovation by providing founders with insulation from market pressure that enables them to pursue their idiosyncratic vision.
The debate over whether dual class structures increase or decrease corporate value is, to date, unresolved. Empirical studies have …