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Business groups and profit redistribution: A boon or bane for firms?
Journal of Business Research, 61 (9): 1004-1014 (2008)
Аннотация
This article examines the phenomenon of profit redistribution in Indian
business groups and relates redistribution with the underperformance
of group-affiliated firms relative to unaffiliated firms. The study
also documents that profit redistribution is more pronounced in groups
of large sizes and high levels of corporate control. The relative
underperformance of affiliated firms persists even after controlling
for other explanations such as corporate diversification and resource
transfers to unlisted firms. The empirical results of the study lend
support for the inefficient profit redistribution explanation of
the "business group discount". © 2007 Elsevier B.V. All rights reserved.
