The dynamic linkages between the stock market prices of dual-class shares are investigated using Finnish data. It is discovered that the prices of dual-class shares are co-integrated. The vector error correction approach indicates long-term informational feedback from high-voting A shares to low-voting B shares. It thus appears that B shares react more slowly to new information than A shares. This information may be useful when predicting the future returns of B shares.
All Science Journal Classification (ASJC) codes
- Control and Systems Engineering
- Theoretical Computer Science
- Computer Science Applications