Stock liquidity and price differentials: A study of Russian and Nordic dual stock companies

Abstract

This thesis investigates the impact of liquidity on the voting premium in Nordic and Russian dual class share companies. The thesis uses two measures of liquidity: relative bid-ask spread and trading turnover. The ownership structure, voting power of superior voting shares and size of the company are variables that are also included in the model as factors that in theory have some influence on the voting premium. In order to conduct the research regression model is used to estimate the voting premium. The results of the analysis for both countries confirm the main hypothesis that liquidity influences the voting premium.