Trading‐off Corporate Control and Personal Diversification through Capital Structure and Merger Activity
John D. Knopf and
Journal of Business Finance & Accounting, 2007, vol. 34, issue 9‐10, 1470-1495
Abstract: In this study we use direct estimates of the portfolio diversification of the largest shareholder in a firm to study the impact of shareholder diversification on the firm. For firms where the controlling shareholder is an individual, our tests indicate that the owner‐managers use debt, dual class shares and corporate control transactions (merger activity) to strategically trade off corporate control and the drawback of poor portfolio diversification. However, for firms where the controlling shareholder is an institution, our results indicate that control but not diversification is important.
References: Add references at CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Journal Article: Trading-off Corporate Control and Personal Diversification through Capital Structure and Merger Activity (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:bla:jbfnac:v:34:y:2007:i:9-10:p:1470-1495
Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0306-686X
Access Statistics for this article
Journal of Business Finance & Accounting is currently edited by P. F. Pope, A. W. Stark and M. Walker
More articles in Journal of Business Finance & Accounting from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().