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Title:Benefits of Control, capital structure and company growth PDF Logo
Authors:Mueller, Elisabeth
Issue Date: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
older Version:http://hdl.handle.net/10419/24147
Document Type:Working Paper
Appears in Collections:ZEW Discussion Papers
Publikationen von Forscherinnen und Forschern des ZEW

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