Dynamics in Ownership and Firm Survival: Evidence from Corporate Germany

43 Pages Posted: 6 Dec 2001

See all articles by Florian Heiss

Florian Heiss

University of Mannheim - Mannheim Research Institute for the Economics of Aging (MEA)

Jens F. Koke

Allianz Group

Multiple version iconThere are 2 versions of this paper

Date Written: November 2001

Abstract

This study investigates the determinants of changes in corporate ownership and firm failure, taking into account different types of sellers and buyers of control blocks. For a large panel of German corporations we find that firms are more likely to fail or to be sold when performance is poor, financial pressure is high, and firm size is small. Cross ownership deters control changes, and ownership concentration has a non-linear impact on the likelihood of control transfer. In contrast to corporate shareholders, private shareholders tend to sell control blocks when financial pressure increases.

Keywords: Bankruptcy, corporate governance, ownership structure, takeover

JEL Classification: G32, G33, G34

Suggested Citation

Heiss, Florian and Koke, Jens F., Dynamics in Ownership and Firm Survival: Evidence from Corporate Germany (November 2001). ZEW Working Paper No. 01-63, Available at SSRN: https://ssrn.com/abstract=292200 or http://dx.doi.org/10.2139/ssrn.292200

Florian Heiss

University of Mannheim - Mannheim Research Institute for the Economics of Aging (MEA) ( email )

D-68131 Mannheim
Germany
0049-621-181-1858 (Phone)
0049-621-181-1863 (Fax)

Jens F. Koke (Contact Author)

Allianz Group ( email )

Denmark

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