INVESTMENT BEHAVIOUR, CORPORATE CONTROL, AND PRIVATE BENEFITS OF CONTROL: EVIDENCE FROM A SURVEY OF UKRAINIAN FIRMS
Article first published online: 6 FEB 2013
© 2013 The Authors. Bulletin of Economic Research © 2013 Blackwell Publishing Ltd and the Board of Trustees of the Bulletin of Economic Research.
Bulletin of Economic Research
How to Cite
Mykhayliv, D. and Zauner, K. G. (2013), INVESTMENT BEHAVIOUR, CORPORATE CONTROL, AND PRIVATE BENEFITS OF CONTROL: EVIDENCE FROM A SURVEY OF UKRAINIAN FIRMS. Bulletin of Economic Research. doi: 10.1111/boer.12001
- Article first published online: 6 FEB 2013
- corporate control;
- firm performance;
- ownership structure;
- private benefits of control;
- soft budget constraints;
We analyse the impact of ownership and corporate control on firms’ investment using the 2001 survey of Yacoub et al. on Ukrainian firms. The model explains investment by output, financial and soft budget constraints, and corporate control (and ownership) categories potentially enjoying private benefits of control. We find that the corporate control model fits better than the ownership model, a negative relationship between state and employee control and firms’ investment, and evidence for the presence of soft budget constraints. A negative relationship between firms’ investment and the relative size of non-monetary transactions strengthens the conclusion of private benefits of control impacting investment.