Institutional EYE

Commentary on Corporate Governance Issues

Let sleeping dogs sleep

January 8, 2019

Every once in a way an idea takes hold which is supposed to be the panacea for a specific problem plaguing the local equity markets. Share buy-backs were seen to be the perfect tonic for reviving anaemic secondary markets in the late 90’s: but markets began their secular uptick not when buy-backs were permitted in 1998, but a few years later when earnings picked-up steam. Dual class shares are seen to be an answer to moribund IPO markets today. That investors should have more flexibility in raising money and investors in deploying funds is a given. But to argue that dual class shares alone can bring the zip back to the IPO markets is dubious as their deleterious impact may far outweigh their advantages.

 

For full report, click here

Please reload

Recent Posts
Please reload

Archive
Please reload

Older Posts (till 31 Dec'15)
Please reload