The probability of observing a certain number of management control systems adopted at a point in time is where y=0,1,2,3,… is the number of systems adopted, xj are the explanatory variables, and βj are the coefficients for the explanatory variables. A coefficient equal to one indicates that the independent variable has no effect upon the probability of adopting MCS.19 A coefficient larger (smaller) than one indicates that the independent variable increases (decreases) the probability of adopting MCS. The explanatory variables include size, age, whether the founder had been replaced as CEO, and the presence of venture capital as well as the control variables. All variables are updated every year.20 Table 3 reports the results.