Artikel
Control Premiums and the Value of the Closely-Held Firm
This paper demonstrates that control premiums are warranted in the valuation of closely-held firms when perquisites exist. The value of control is a function of the ownership structure and the size of perquisite cash flows. The conventional logic of assigning control premiums based upon transactions in the public market is shown to be flawed. A statistic for calculating control premiums based on ownership structure and the size of perquisite flows is developed. The paper closes with a short discussion of how minority discounts and control premiums are related.
- Language
-
Englisch
- Bibliographic citation
-
Journal: Journal of Small Business Finance ; ISSN: 1057-2287 ; Volume: 1 ; Year: 1991 ; Issue: 2 ; Pages: 155-159 ; Greenwich, CT: JAI Press
- Classification
-
Management
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- Subject
-
Control Premium
Valuation
Closely Held
Small Firm
- Event
-
Geistige Schöpfung
- (who)
-
Schubert, Walt
Barenbaum, Les
- Event
-
Veröffentlichung
- (who)
-
JAI Press
- (where)
-
Greenwich, CT
- (when)
-
1991
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Artikel
Associated
- Schubert, Walt
- Barenbaum, Les
- JAI Press
Time of origin
- 1991
Other Objects (12)
Value and small firm premiums in the South African market
Conditional Risk Premiums and the Value Function of Prospect Theory
Firm-specific pay premiums and the gender wage gap in 21 European countries
Where Do We Stand on Closely-Held Firm Valuation?
Premiums : for the sessions .... 1823/24 (1823)
The Term Structure of Dividend Risk Premiums
Labor and the Market Value of the Firm
Capital Structure and the Value of the Firm
Fluid Measure and Disbursement: Valuation of a Closely-Held Firm
Green bond premiums in the chinese secondary market
The role of networks in international acquisition premiums
On the Determinants of Premiums in Financial Markets
Value and small firm premiums in the South African market
Conditional Risk Premiums and the Value Function of Prospect Theory
Firm-specific pay premiums and the gender wage gap in 21 European countries
Where Do We Stand on Closely-Held Firm Valuation?
Premiums : for the sessions .... 1823/24 (1823)
The Term Structure of Dividend Risk Premiums
Labor and the Market Value of the Firm
Capital Structure and the Value of the Firm
Fluid Measure and Disbursement: Valuation of a Closely-Held Firm
Green bond premiums in the chinese secondary market
The role of networks in international acquisition premiums
On the Determinants of Premiums in Financial Markets
Value and small firm premiums in the South African market
Conditional Risk Premiums and the Value Function of Prospect Theory
Firm-specific pay premiums and the gender wage gap in 21 European countries
Where Do We Stand on Closely-Held Firm Valuation?
Premiums : for the sessions .... 1823/24 (1823)
The Term Structure of Dividend Risk Premiums
Labor and the Market Value of the Firm
Capital Structure and the Value of the Firm
Fluid Measure and Disbursement: Valuation of a Closely-Held Firm
Green bond premiums in the chinese secondary market
The role of networks in international acquisition premiums