主 题：Corporate Risk-Taking in Dual-Class Firms
主讲人：Mark H. Liu 副教授 (University of Kentucky)
Dr. Mark H. Liu is an associate professor of finance in Gatton College of Economics and Business at the University of Kentucky. His research interests are on theoretical and empirical corporate finance (IPOs, Mergers & Acquisitions, Corporate Governance, Financial Analysts, Dividend Policy, and Corporate Restructuring). He obtained his Ph.D. in finance from Boston College in 2004. Dr. Liu has published his research in top finance journals such as Journal of Financial Economics, Journal of Financial and Quantitative Analysis, Journal of Corporate Finance, and Review of Corporate Finance Studies.
While costs associated with dual-class share ownership structures are widely documented, the benefits are seldom studied in the literature. We document that dual-class firms have fewer business segments, higher earnings volatility, higher cross-segment correlations in earnings, and less diversified sales across different business segments compared to propensity-matched single-class firms. The results are consistent with the hypothesis that dual-class shares can shield insiders from short-term market pressure, allowing them to focus on riskier projects to enhance long-term shareholder value. Dual-class shares increase the market valuation of firms with high corporate risks, in contrast to the finding in the literature that dual-class firms trade at lower valuations. To provide a possible channel through which dual-class firms can increase corporate risk-taking, we find that dual-class firms are more likely to engage in mergers and acquisitions (M&As), especially nondiversifying M&As. To address endogeneity concerns, we consider a sample of share unifications and show that when dual-class firms change to single-class status, their corporate risks decrease.