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Bridge over ocean
1 November 2010 Financial Analysts Journal Volume 66, Issue 6

Is A Better than B? How Affect Influences the Marketing and Pricing of Financial Securities

  1. James S. Ang
  2. Ansley Chua
  3. Danling Jiang

Culture and experience associate A with superior quality. In the marketing of dual-class IPOs, issuers are mindful of this preference. For years after IPO issuance, inferior voting rights shares labeled Class A enjoy higher market valuations and smaller voting premiums than do Class B shares.

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