Business Group Spillovers

• 成果类型: Article; Early Access
• 署名作者: Naaraayanan, S. Lakshmi; Wolfenzon, Daniel
• 署名单位: University of London; London Business School; Columbia University; National Bureau of Economic Research
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhad057
• 发表日期: 2023
• 关键词: emerging markets; OWNERSHIP; highway; IMPACT; liquidity; shocks; COSTS

摘要

We compare the investment of standalone firms across regions after a positive shock to the investment opportunities generated by a large-scale highway development project. We show that the standalones' investment sensitivity is lower in regions with a higher density of business groups in the local area. We investigate mechanisms driving our results and find support for a financing mechanism whereby banks allocate capital preferentially to group-affiliated firms in responding to the increase in credit demand. Overall, our study documents that business groups have spillover effects on standalone firms.Authors have furnished an , which is available on the Oxford University Press Web site next to the link to the final published paper online