Showing 1 - 7 of 7
Using novel data on European firms, this paper examines the effect of business group affiliation on innovation. We find that business groups foster the scale and novelty of corporate innovation. Group affiliation is particularly important in industries that rely more on external finance and have...
Persistent link: https://www.econbiz.de/10014048202
Limited liability is a key attribute of the corporate form and one of the most important institutional innovations of the nineteenth century. However, when the owner of a corporation is another corporation as in many corporate groups, an important justification for limited liability—to protect...
Persistent link: https://www.econbiz.de/10012916612
When is a nexus of contracts more firm-like? We theoretically and empirically address this question in the context of business groups. We develop a model where assets can be diverted from one group affiliate to another and asset redeployment is more valuable when firms operate in related...
Persistent link: https://www.econbiz.de/10013156201
Persistent link: https://www.econbiz.de/10014434829
Persistent link: https://www.econbiz.de/10009777042
This paper investigates the effect of financial development on the incentives to form business groups. We examine how this relation varies across exogenous industry conditions, legal environments, and firms' life cycle. Using a comprehensive dataset on group affiliation of European firms, we...
Persistent link: https://www.econbiz.de/10012725766
Limited liability is a key attribute of the corporate form and one of the most important institutional innovations of the nineteenth century. However, when the owner of a corporation is another corporation as in many corporate groups, an important justification for limited liability--to protect...
Persistent link: https://www.econbiz.de/10012453000