Consequences of changes in ultimate share ownership
The results so far indicate that changes in control are most likely to occur in poorly performing firms — firms that offer the greatest opportunities for value improvement. If changes in control increase firm efficiency, changes in corporate control should be followed by corporate restructuring and ultimately lead to improvements in firm performance. To analyze the consequences of control changes, a univariate and a multivariate analysis are applied. The aim is to test H.5, as outlined in section 2.3.
KeywordsFirm Performance State Transfer Sales Revenue Fixed Asset Control Change
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- 156.Köke (2004, pp. 71–73) uses a similar methodology.Google Scholar
- 158.The following section is based on Greene (2003, pp. 307–334), and Cameron and Trivedi (2005, pp. 763–768).Google Scholar
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- 160.See Arellano and Bond (1991, p. 279); Wooldridge (2002, pp. 421–436) provides a general introduction to GMM estimation and Greene (2003, pp. 303–307) illustrates instrumental variables estimation in the context of the random effects model.Google Scholar
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- 170.The following robustness tests are based on the description in Elsas (2007, p. 37).Google Scholar