Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24494
Authors: 
Mueller, Elisabeth
Year of Publication: 
2005
Series/Report no.: 
ZEW Discussion Papers 05-55 [rev.]
Abstract: 
This paper studies the influence of the benefits of control on the capital structure and the growth of private companies for a sample of 8,964 UK companies with limited liability observed for up to 5 years. It is hypothesised that companies in which existing owners would lose more control if they expanded, have smaller equity increases, are more highly levered and grow more slowly. Potential loss of control is measured as the difference in the probability of winning a vote for the largest owner before and after a hypothetical equity increase. Evidence is found that is consistent with the hypotheses.
Subjects: 
benefits of control
capital structure
company growth
small and medium-sized enterprises
JEL: 
G32
M13
L20
Document Type: 
Working Paper

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