Affiliated Firms and Financial Support: Evidence from Indian Business Groups
Affiliated Firms and Financial Support: Evidence from Indian Business Groups
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DOI：
10.1016/j.jfineco.2006.09.008
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发表时间：
2007-07
期刊：
影响因子：
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通讯作者：
R. Gopalan;Vikram Nanda;Amit Seru
中科院分区：
文献类型：
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作者：
R. Gopalan;Vikram Nanda;Amit Seru
我们调查印度企业集团内部资本市场的运作情况。我们发现，集团内部贷款是集团公司之间转移现金的重要手段，通常用于支持财务实力较弱的公司。有证据表明，提供支持的一个重要原因可能是避免集团公司违约以及随之而来的对集团其他公司的负面溢出效应。与这种溢出效应一致的是，一个集团首次破产后，集团内其他公司的外部融资、投资和利润都会大幅下降，破产概率也会增加。
We investigate the functioning of internal capital markets in Indian Business Groups. We document that intragroup loans are an important means of transferring cash across group firms and are typically used to support financially weaker firms. Evidence suggests that an important reason for providing support may be to avoid default by a group firm and consequent negative spillovers to the rest of the group. Consistent with such spillovers, the first bankruptcy in a group is followed by significant drops in external financing, investments and profits of other firms in the group and an increase in their bankruptcy probability.