IPOs affiliated to business groups represent a large fraction of new issues in global markets. Groups are characterized by stronger private benefits control and an internal funding advantage. Consistent with these features, group firms more selective when going public than standalone firms. In particular, larger older engage less market timing IPOs. Group invest profitable post IPO. Private als...

Firm-specific information has a damped effect on business group-affiliated firms’ stock prices. Such idiosyncratic returns are less responsive to commodity price shocks than the of otherwise similar unaffiliated firms in same country and commodity-sensitive industry. Using global means we assess responses common magnitude, frequency, observability. Further identification follows from difference...

We investigate the nexus between corporate social responsibility (CSR) and firms' stock market liquidity. Using actual firm-level CSR expenditure data a quasi-natural experiment setup of mandated regulation in India, we find that firms complying with mandate experience significantly higher liquidity, relative to non-CSR post-CSR period. This effect seems be more pronounced among not affiliated ...

We document the distortionary effects of accounting-based regulation on reported earnings. In India only firms with negative book value of equity (networth) can seek bankruptcy protection. Using a novel dataset of bankrupt firms from India, we show that firms manage earnings downward to seek bankruptcy protection. Strengthening creditor rights reduces downward earnings management among non-grou...

We compare underwriting performance by commercial bank-affiliated firms (Section 20’s) and traditional investment banks over the period 1995-98. We find that gross spreads are lower in the case of Section 20 underwritings, but that yield spreads are not. Our sample includes a substantial number of observations following changes in Federal Reserve policies that substantially eased restrictions o...

In this study, we examine whether and to what extent affiliated bankers on board may affect firms’ corporate social performance. Using a propensity score-matched sample from 2002 2016, find that directors banks exert significantly positive influence Furthermore, of are negatively associated with firm investments in responsibility (CSR) activities when firms experience financial distress. Finall...

Market mediation literature has been taking primarily a triadic view in studying the role and impact of mediators, actors that occupy a middle position, on supply and demand conditions in markets. Mediating organizations facilitate exchange relationship on continuous basis between multiple networks of interdependent affiliated actors. An affiliation structure gives rise to the property of duali...

In this paper we analyze the interrelatedness of security analysis and market-making activities. Our results indicate that there exists a bidirectional and positive relation between analyst following and the number of market makers. Using detailed data on analyst and dealer affiliations, we also find that dealers are more likely to make markets in stocks that are tracked by analysts who are aff...

The COVID-19 pandemic has interrupted firms and their value networks. lockdown measures taken by governments around the globe have triggered a massive supply demand shock. ensuing crisis created economic chaos that resulted in business disruptions for companies, customers, suppliers, affiliated service providers (banks logistics providers). Firms are turning to chain financing solutions stabili...