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Propping: Evidence from new share issues of Turkish business group firms

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  • Gonenc, Halit
  • Hermes, Niels

Abstract

This article investigates propping in Turkish business group firms for the period 1991-2003. We claim that patterns in the use of offering cash rights share issues may indicate that controlling shareholders prop up funds in firms. The results of our empirical analysis provide indicative evidence for the existence of propping during the period 1991-1999, which was a period of moderate negative growth.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Multinational Financial Management.

Volume (Year): 18 (2008)
Issue (Month): 3 (July)
Pages: 261-275

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Handle: RePEc:eee:mulfin:v:18:y:2008:i:3:p:261-275

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Web page: http://www.elsevier.com/locate/mulfin

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References

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  10. Eric Friedman & Simon Johnson & Todd Mitton, 2003. "Propping and Tunneling," NBER Working Papers 9949, National Bureau of Economic Research, Inc.
  11. Jae-Seung Baek & Jun-Koo Kang & Inmoo Lee, 2006. "Business Groups and Tunneling: Evidencefrom Private Securities Offeringsby Korean Chaebols," Journal of Finance, American Finance Association, vol. 61(5), pages 2415-2449, October.
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Cited by:
  1. Mario García Molina, 2010. "Crisis Y Diversificación De Los Grupos Empresariales Colombianos A Finales De Los Noventa," DOCUMENTOS DE TRABAJO - ESCUELA DE ECONOMÍA 007571, UN - RCE - CID.
  2. Fernando Lefort & Rodrigo Gonzalez, 2011. "Holding Company Discounts and Business Groups Optimal Bailout of Subsidiaries," Working Papers 34, Facultad de Economía y Empresa, Universidad Diego Portales.

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