How the cost of control affects the cost of shares of various stakes

The main purpose of this article is to create a mathematical apparatus for calculating premiums for control and discounts for the lack of control when calculating share interests in business. The article covers the issue of estimating premium and discount rates for the presence or lack of control wh...

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Bibliographic Details
Published in:International journal of finance and economics 2021-10, Vol.26 (4), p.5531-5556
Main Author: Kozyr, Yuriy V.
Format: Article
Language:English
Subjects:
block of shares
discount for the lack of control
Discount rates
level of control
premium for control
Premiums
Online Access:Get full text
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Summary:The main purpose of this article is to create a mathematical apparatus for calculating premiums for control and discounts for the lack of control when calculating share interests in business. The article covers the issue of estimating premium and discount rates for the presence or lack of control when switching from one to another level of value taking into account changes in a controlling number of shares exercised by the owners of corresponding stock shares, equity holding structure, market conditions and applicable laws covering stock corporations. The article also provides corresponding mathematical tools and calculation examples.
ISSN:1076-9307
1099-1158
DOI:10.1002/ijfe.2079