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Does dual-class share structure increase risk-taking? Evidence from Chinese firms in the United States

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  • Ye, Ling
  • Tian, Jiaming
  • Wang, Na

Abstract

Using Chinese Concept Stocks listed in the US from 2005 to 2020, this paper examines the impact of dual-class share structure on corporate risk-taking. We find that dual-class firms have a high level of risk-taking, which increasing research and development investment and decreasing dividend payout levels are significant mechanisms that increase risk-taking. Product market competition and corporate life-cycle have significant heterogeneous impacts. Further analysis indicates that a higher risk-taking level effectively improves dual-class firms’ value, while corporate value decreases in low-risk scenarios.

Suggested Citation

  • Ye, Ling & Tian, Jiaming & Wang, Na, 2025. "Does dual-class share structure increase risk-taking? Evidence from Chinese firms in the United States," Finance Research Letters, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:finlet:v:75:y:2025:i:c:s1544612325000704
    DOI: 10.1016/j.frl.2025.106805
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    References listed on IDEAS

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