Estimating the private benefits of control from partial control transfers: methodology and evidence

Abstract

We elaborate the Barclay and Holderness (1989) methodology commonly used for estimating the private benefits of control from block trades. Despite the recent methodological advance in the area, i.e., Albuquerque and Schroth (2010), the Barclay and Holderness methodology remains the only applicable methodology in many if not most of the cases. The empirical work identifies a large impact of our revised methodology in cases of partial control transfers; in many cases our methodological improvement appears crucial.