Nowadays, business groups play an outstanding role in financial markets. Corporates in the trading groups are able to use technology, capital, human resources, productions and services of other members in the group in addition to their own resources and capabilities. Thus, this paper studies the effect of business group affiliation on cash holdings and return on equity. The sample involves 94 c...

Drawing on recent theoretical explanations, we develop hypotheses on the relationship between business group affiliation and FDI by developing country firms. We hypothesize a positive relationship between business group affiliation and FDI overall, as well as between business group affiliation and FDI into advanced countries and into developing countries. In addition, we argue that the impact o...

Using novel data on European firms, this paper examines the effect of business group affiliation on innovation. We find that business groups foster the scale and novelty of corporate innovation. Group affiliation is particularly important in industries that rely more on external finance and have a higher degree of information asymmetry. We also find that the innovation of affiliates is less sen...

We address the institutional void hypothesis that suggests affiliation with a business group will improve a firm's performance in circumstances of poor quality institutions and extensive market failures. Prior research provides mixed evidence for this view and there is little research on how institutional development affects the value of affiliation. Since 1997 China has experienced significant...

Business groups have played a vital role in the development of emerging markets. However, we share very limited understanding business group that act on affiliated firms’ CSR performance. Using manually sorted data A-share listed companies and China from 2010–2017, examine whether company’s group-affiliation affects its corporate social responsibility (CSR) performance mediating mechanisms this...