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(Disclaimer: I know nothing.) One of the things that I personally believe is that when a company IPOs their priorities become heavily skewed towards profit and
by ianstormtaylor 10y ago
(Disclaimer: I know nothing.)
One of the things that I personally believe is that when a company IPOs their priorities become heavily skewed towards profit and earnings, often over a short term period, above all else. And I think that hurts them.
I'm not sure that removing the voting rights of stockholders completely eliminates that pressure—it's probably also rooted in having to be on earnings calls, and the price fluctuations of bad earnings calls, etc.—but remove those voting rights might help to eliminate some of the negative, short-term-profit-seeking pressure.
If it does, it seems reasonable for some investors to want to invest in companies that aren't as worried about voting rights takeovers.
- prostoalex 10y ago> remove those voting rights might help to eliminate some of the negative, short-term-profit-seeking pressure For every long-term success story (FB) there's also a story where investors gave the founder super-voting rights and got pretty much nothing in return (ZNGA).