Skip to main content

Benefits of control, capital structure and company growth

Buy Article:

$51.63 plus tax (Refund Policy)

Abstract:

This article studies the influence of the benefits of control on the capital structure and the growth of private companies for a sample of 8964 UK companies with limited liability observed for up to 5 years. It is hypothesized 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.

Document Type: Research Article

DOI: http://dx.doi.org/10.1080/00036840600981622

Affiliations: Department of Industrial Economics and International Management, Centre for European Economic Research (ZEW), 68161 Mannheim, Germany

Publication date: November 1, 2008

More about this publication?
routledg/raef/2008/00000040/00000021/art00002
dcterms_title,dcterms_description,pub_keyword
6
5
20
40
5

Access Key

Free Content
Free content
New Content
New content
Open Access Content
Open access content
Subscribed Content
Subscribed content
Free Trial Content
Free trial content
Cookie Policy
X
Cookie Policy
ingentaconnect website makes use of cookies so as to keep track of data that you have filled in. I am Happy with this Find out more