Resource title

Benefits of Control, capital structure and company growth

Resource image

image for OpenScout resource :: Benefits of Control, capital structure and company growth

Resource description

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.

Resource author

Elisabeth Mueller

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/24494

Resource license

Adapt according to the presented license agreement and reference the original author.