We propose a new order of financing investments based on the considerations of control and financial constraints in a market with the presence of business groups. We base our analysis on a sample of acquisitions, one of the largest forms of investments, made by India's publicly listed firms from...

There is little evidence to show that capital markets allocate capital to the most profitable uses. We bridge this gap by examining Indian IPOs. When market regulations are weak, more firms go public and firms with poor fundamentals raise more capital. Over time, primary markets do not...