Should Business Groups be Dismantled? The Equilibrium Costs of Efficient Internal Capital Markets

By Heitor Almeida, Daniel Wolfenzon. 2006

229 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/afdf8efb3a2280589160163791e87460bf947c12

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Citations in the corpus

Innovation and Family Ownership: Empirical Evidence from India (2014, background): “The group-affiliated Indian family firms can obtain access to “internal capital markets” for funds and utilize group reputation for other essential external resources for innovation activities (Almeida & Wolfenzon, 2006).”
Internal Capital Market and Dividend Policies: Evidence from Business Groups (2014, unknown): “6 Almeida and Wolfenzon (2006b) use several of these insights and develop a theory to explain how pyramidal groups arise. While our model has similarities with theirs, our objective is to understand and empirically test the relation between investment flows and dividends in affiliated firms. In doin”
Varieties of Asian capitalism: Toward an institutional theory of Asian enterprise (2009, background): “For example, the substantial presence of business groups that find it efficient to establish internal capital markets to allocate finance among competing projects will simultaneously reduce the liquidity and development of external capital markets ( Almeida & Wolfenzon, 2006 ).”
Family Business Groups around the World: Financing Advantages, Control Motivations and Organizational Choices (2011, methodology): “12 For robustness purposes, we adopt an alternative weighted average positioning measure from Almeida et al. (2011). This measure adjusts for cases when a firm is controlled by two or more affiliates at different positions in the pyramid by weighting the Pyramid Layer value of each chain by the ulti”
Internal Capital Markets in Business Groups: Evidence from the Asian Financial Crisis (2014, unknown): “For example, Almeida and Wolfenzon (2006) argue that groups’ e ﬃ cient internal capital markets may increase ﬁ nancial constraints on independent ﬁ rms and be harmful to economy-wide capital allocation.”
Are OECD-prescribed “good corporate governance practices” really good in an emerging economy? (2011, background): “…on South Korea, Delios, Wu, and Zhou (2006) and Sheu and Yang (2005) on Taiwan, and Mitton (2002) and Lins (2003) on Indonesia, the Philippines, Sri Lanka, Thailand, and others. cash rights in the controlled affiliates (Almeida & Wolfenzon, 2006; Levy, 2009; Morck et al., 2005; Peng & Jiang, 2010).”
Are family ownership and control in large firms good, bad, or irrelevant? (2011, background): “Concerns are expressed about the ability of family business groups to restrain competition (Rajan & Zingales, 2003), and some groups are forced to restructure (Almeida & Wolfenzon, 2006).”
Doing Growth Diagnostics in Practice: A 'Mindbook' (2008, background): “…both coordination and finance problems which were binding on growth at that time, but some argue that during the nineties these chaebols might have generated negative externalities to the finance of non conglomerated firms, especially small and medium enterprises (Almeida and Wolfenzon, 2006).”
The Internal Capital Markets of Business Groups: Evidence from Intra-Group Loans (2014, unknown): “offerings (Atanasov, Black, Ciccotello, and Gyoshev, 2010), privatizations (Atanasov, 2005), dividend payments (Faccio, Lang, and Young, 2001), and board compensation (Urzúa I., 2009). In terms of the financing advantage, Almeida, Park, Subrahmanyam, and Wolfenzon (2011) show that groups use interna”
The Adolescence of Family Firm Research (2012, unknown): “These groups are sometimes viewed as quasi-capital markets that can share risk (Khanna & Yafeh, 2005) and allocate credit to affiliated firms (Almeida & Wolfenzon, 2006).”
A Cross-Disciplinary Exploration of Entrepreneurship Research (2007, background): “For example, scholars have studied internal capital markets (Almeida & Wolfenzon, 2006; Gertner, Powers, & Scharfstein, 2002) and financial characteristics and outcomes of restructuring actions (Allen, Lummer, McConnell, & Reed, 1995; Denning & Shastri, 1993; Johns, 1993).”