Cross Subsidies, External Financing Constraints, and the Contribution of the Internal Capital Market to Firm Value

By Matthew T. Billett, David C. Mauer. 2001

248 citations recorded by the source corpus.

Subfields: Accounting, Finance, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/302511cd10d6d3b101702d2f8356e5a86e9c863c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

1. Philip G. Berger
2. Rebecca N. Hann
3. Yuhai Xuan
4. Christian Leuz
5. Belén Villalonga
6. Peter D. Wysocki
7. Daniel A. Bens
8. J–L W. Mitchell Van der Zahn

In Finance

1. Philip G. Berger
2. Rebecca N. Hann
3. Yuhai Xuan

In Strategy and Management

1. Philip G. Berger
2. Rebecca N. Hann
3. Yuhai Xuan
4. Belén Villalonga
5. Christian Leuz
6. Daniel A. Bens
7. Peter D. Wysocki
8. J–L W. Mitchell Van der Zahn

Citations in the corpus

• Intragroup Propping: Evidence from the Stock-Price Effects of Earnings Announcements by Korean Business Groups (2008, unknown): “Furthermore, the efficient internal capital market can enhance the aggregate value of the whole business group by mitigating financial constraints that the winner firm faces (Billett and Mauer, 2003; and Khanna and Yafeh, 2005).”
• Segment Profitability and the Proprietary and Agency Costs of Disclosure (2007, methodology): “To incorporate into our measure an assessment of whether the cross-segment funds transmissions are inefficient, we follow Billett and Mauer (2003) and assume that a segment that underperforms relative to the remaining segments of the firm is an “inefficient” segment.”
• Internal Capital Markets in Business Groups: Evidence from the Asian Financial Crisis (2014, unknown): “In a similar context, Rajan et al. (2000), Lamont and Polk (2002), and Billett and Mauer (2003) report that the ‘corporate socialism’ is more severe for conglomerates with more diverse quality of investment opportunities across divisions.”
• Corporate Diversification and Credit Constraints: Real Effects across the Business Cycle (2006, unknown): “Lamont (1997), Shin and Stulz (1998), Rajan, Servaes, and Zingales (2000), Khanna and Tice (2001), and Billet and Mauer (2003) find evidence of active cross-subsidization within diversified firms.”
• Empire-Building or Bridge-Building? Evidence from New CEOs' Internal Capital Allocation Decisions (2009, background): “Since multisegment firms frequently do not fully allocate accounting items to the segment level in their reporting, I follow Berger and Ofek (1995) and Billett and Mauer (2003) to adjust the segmentlevel data in conformity to the firm-level data.”
• Firm Structure and Corporate Cash Holdings (2011, unknown): “(2000), and is also subsequently used in papers such as Billett and Mauer (2003). To measure the difference in growth opportunities among segments, DIVERSITY is defined as the standard deviation of the segment asset-weighted Tobin's Q (TobinsQ) of the firm divided by the mean Tobin's Q of all segmen”
• Productivity, Restructuring, And The Gains From Takeovers (2013, unknown): “The second measure, Reallocate, is obtained from Billett and Mauer (2003).”