► Analysis of the impact of ownership variables on investment for a sample of firms. ► Investment determined by marginal Q and private benefits of control. ► Ownership shares model the impact of controllers enjoying private benefits. ► Negative impact of government ownership on investment and soft budget constraints. ► Significant role for private benefits of control influencing investment. This paper analyzes the relationship between investment behavior of firms and ownership and corporate governance variables for a sample of large Ukrainian firms 2003–2007. The paper sheds light on the role of the ownership structures of firms and its effect on investment behavior via the presence of private benefits of control, financial and soft budget constraints. We find a negative impact of government ownership on investment and evidence for soft budget constraints. Foreign ownership is associated with financial constraints. Firms with management ownership do not appear to suffer from financial constraints. These and other findings demonstrate a significant role for private benefits of control consistent with the presented investment model that allows for private benefits of control and financial and soft budget constraints.