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.
Heiss, Florian und Jens Köke (2001), Dynamics in Ownership and Firm Survival: Evidence from Corporate Germany, ZEW Discussion Paper No. 01-63, Mannheim. Download