Determinants of dual-class initial public offerings: Evidence of a post-2014 structural shift

This paper investigates the determinants of dual-class share initial public offerings (IPOs) in the United States (U.S.), with a focus on how these drivers have changed over time. By dividing the sample into two periods, before and after 2014, we find a structural shift in the firm characteristics associated with dual-class IPOs. Logistic regression results show that, while many traditional predictors remain stable or insignificant across periods, the technology sector emerges as a key driver in the post-2014 sample, with a strong and statistically significant positive effect on the likelihood of adopting a dual-class structure. This contrasts with the pre-2015 period, in which technology affiliation showed no such influence. Venture capital backing does not appear to play a significant role in either period. Our findings suggest that since 2014, the dual-class IPO landscape has evolved in response to changing market dynamics, particularly reflecting the rise of high-growth technology firms and shifting norms around control and governance at the time of going public. These insights contribute to the ongoing discussion around dual-class structures and their implications for capital market development.