• Jim (Jiecheng) Huang

Should You Worry About Snap? Academic Evidence


- Snapchat is managed through dual-class shares that provide control power to the management.

- Academic evidence shows that dual-class shares can lead to agency problems and may be detrimental to company’s operations and performance.

- However, examples from Google and Facebook show that they can also be beneficial.

- Overall, these structures can benefit investors if they fully believe in the founders, but that is not the case for most dual-class companies.

To read the full article click here.

#stockmarket #Snap #socialnetwork #snapchat

0 views