Coinsurance Within Business Groups: Evidence from Related Party Transactions in an Emerging Market

• 成果类型: Article
• 署名作者: Jia, Nan; Shi, Jing; Wang, Yongxiang
• 署名单位: University of Southern California; Jiangxi University of Finance & Economics; Australian National University; University of Southern California
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.1120.1703
• 发表日期: 2013
• 页码: 2295-2313
• 关键词: organizational studies; strategy; Industrial Organization; firm objectives; organization and behavior

摘要

Using novel transaction-level data on Chinese business groups, this study provides the first direct evidence of the coinsurance theory of business groups by investigating when different types of internal resources are transferred within a business group. We find that in Chinese business groups, a credit crunch experienced by the controlling shareholding firm (the controller) of a publicly listed firm increases the loan-based related party transactions (RPTs) including loan guarantees and intercorporate loans provided by the listed firm to the controller. In turn, when the listed firm's performance dips, the controller and its son firms provide more support to the listed firm in the form of non-loan-based RPTs. These findings directly show the dynamic interactions of members within business groups.