The internal capital markets of business groups: Evidence from intra-group loans

• 成果类型: Article
• 署名作者: Buchuk, David; Larrain, Borja; Munoz, Francisco; Urzua, Francisco, I
• 署名单位: University of Houston System; University of Houston; Pontificia Universidad Catolica de Chile; Stanford University; Erasmus University Rotterdam; Erasmus University Rotterdam - Excl Erasmus MC
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2014.01.003
• 发表日期: 2014
• 页码: 190-212
• 关键词: business groups; Pyramids; internal capital markets; Intra-group loans; Cash-flow rights

摘要

We study business groups' internal capital markets using a unique data set on intra-group lending in Chile (1990-2009). In line with groups financing advantage, firms that borrow internally have higher investment, leverage, and return on equity (ROE) than other firms. At the margin, controlling shareholders have higher cash-flow rights in borrowing firms than in lending firms. However, there is no robust evidence of minority shareholders losing out from intra-group loans as tunneling predicts. Our evidence is consistent with the idea that strict regulation and disclosure requirements for intra-group loans, which are features of the Chilean market, reduce the risk of expropriation in pyramids. (C) 2014 Elsevier B.V. All rights reserved.