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We analyze a unique dataset from a survey of CFOs of diversified firms to examine four areas of diversification and … internal capital markets: causes and financing effects of corporate diversification, capital budgeting processes, capital …
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We develop a simple model of investment in business groups subject to moral hazard. Our model suggests that productivity and pledgeable income are the drivers of resources in the internal capital markets of these groups. This prediction can be use to explain on the grounds of efficiency some...
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