Solactive explores The Dilemma of Multiple Share Classes in new Research Blog

Solactive explores The Dilemma of Multiple Share Classes in new Research Blog
14.06.2018 08:13 am

Solactive explores The Dilemma of Multiple Share Classes in new Research Blog


A recent FT article described the multiple share class structure as challenging to corporate standards as one share doesn’t necessarily equal one vote anymore. On the other hand, satisfying shareholders by focusing on quarterly earnings forecasts and therefore adopting short-termism overvaluing long-term performance was debated by Warren Buffett, as well as Jamie Dimon. A factor potentially contributing to companies’ long-term performance is the share class structure.

Timo Pfeiffer, Head of Research at Solactive, commented: “As multiple share classes have recently attracted more media attention, we, as the research team, have thought it would be a great opportunity to dig deeper into the topic and see how much long-term performances are truly affected by the difference of issuing share classes, and therefore either distributing voting power, or leaving it within the company.”

In the research blog post “The Dilemma of Multiple Share Classes”, Solactive has been investigating the relationship between the issuance of multiple share classes and a company’s long-term performance by constructing a portfolio composed of companies weighted by market capitalization with multiple share classes offering different voting rights in the US.

Related News

Peltarion secures US$ 20M series A funding to advance humankind through AI

This latest round brings Peltarion’s total funding to US$ 34 million to date, including previous investment from FAM, the holding company privately owned by the three largest... Read more »

genesis secures $3m Series A funding from Illuminate Financial and Tribeca Angels

genesis, the international capital markets software firm, today announced the completion of its Series A financing round, securing a total of $3m from Illuminate Financial, a U... Read more »

Berlin based Fintech Penta raises €7 million Series-A

Business bank account Penta today announced a €7 million investment round as its customer base continues to grow at pace. User numbers have increased over 900%, since the... Read more »

Aspiring Blockchain bank BABB raises 1.4m to help Unbanked

BABB has successfully completed its equity crowdfunding through Crowdcube, raising more than £1,400,000 from 1,232 investors... Read more »

iSignthis Completes $10m Institutional Placement

iSignthis Ltd (ASX : ISX | DE : TA8) (Company) is pleased to advise that it has today successfully secured a placement of 68,965,517 ordinary shares in the Company to a number... Read more »

AI-powered InsurTech Concirrus closes £5 million funding to service growth in customer demand

Concirrus, the London-based InsurTech company leading the Marine and Motor Analytics market change, has raised £5... Read more »

Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App