Riyanto, Yohanes E.; Toolsema, Linda A. - Department of Economics, National University of Singapore - 2004
This paper presents a formal model of tunneling and propping in a pyramidal ownership structure. Tunneling refers to … controlling shareholders shifting resources from one firm to another in the same pyramid. Propping is tunneling that is done to … pyramidal structure only in the presence of myopic investors or in combination with propping. …