Internal capital markets, ownership structure, and investment efficiency: Evidence from Taiwanese business groups

James Juichia Lin*, Yin Hua Yeh

*Corresponding author for this work

研究成果: Article同行評審

摘要

This study uses a unique data set to thoroughly investigate how the financing provided by a business groups' internal capital markets and control-enhancing ownership structure relate to investment efficiency. We find that group-affiliated firms that make more intensive use of related-party transactions that facilitate an internal capital market exhibit a reduced probability of under-investment. We also find that pyramidal (cross) ownership improves (weakens) investment efficiency suggesting different types of control-enhancing structure have strongly contrasting effects on investment efficiency. These findings reveal both the financing advantages and disadvantages of business groups.

原文English
文章編號101284
期刊Pacific Basin Finance Journal
60
DOIs
出版狀態Published - 四月 2020

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