Cash flow et droit de vote dans les entreprises cotées – SMS 2009

This paper investigates two research questions. First, does the adoption of mechanisms such as dual share classes, pyramid structures, cross-equity holdings and voting pacts agreements impact venture IPO valuation? Second, does the strength of this impact, if any, depends upon some firm specific and founder specific characteristics? Building upon agency theory, we suggest that these mechanisms, often adopted by founder CEOs to disconnect their cash flow rights from voting rights, are negatively related to venture IPO valuation. Moreover, we propose that the strength of this negative impact increases with firm size and age. Conversely, the strength of the negative impact decreases with founder’s human and social capital as well as the amount of shares he/she detains after the IPO.