Using a sample of U.S. dual class companies, we empirically investigate the effects of the divergence between insiders’ voting and cash flow rights on market reaction to seasoned equity offerings (SEOs) and long-run stock performance following SEOs. We find that SEO announcement returns and...

In the 1990s, the success of the ENERSIS conglomerate in Latin America captured the attention of world electric conglomerates like ENDESA Spain (ES) and DUKE Energy from the USA. ES tried in 1997 to take over ENERSIS, which ended with a colossal commitment of investments. The friendly tender...